We define a local notion of dominance that speaks to the true choice problems among actions in a game tree and does not rely on global planning . When we do not restrict players' ability to do contingent reasoning, a reduced strategy is weakly dominant if and only if it prescribes a locally dominant action at every decision node, therefore any dynamic decomposition of a direct mechanism that preserves strategy-proofness is robust to the lack of global planning. Under a form of wishful thinking, we also show that strategy-proofness is robust to the lack of forward-planning . Moreover, from our local perspective, we can identify rough forms of contingent reasoning that are particularly natural . We construct a dynamic game that implements the Top Trading Cycles allocation under a minimal form of contingent reasoning, related to independence of irrelevant alternatives .
We define a local notion of dominance that speaks to the true choice problems among actions in a game tree . When we do not restrict players' ability to do contingent reasoning, a reduced strategy is weakly dominant if and only if it prescribes a locally dominant action at every decision node, therefore any dynamic decomposition of a direct mechanism that preserves strategy-proofness is robust to the lack of global planning. Under a form of wishful thinking, we also show that strategy-proofness is robust to the lack of forward planning . Moreover, we identify simple forms of contingent reasoning and foresight, driven by the local viewpoint . We construct a dynamic game that implements the Top Trading Cycles allocation in locally dominant actions under these simple forms of reasoning .
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and does not rely on global planning
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forward-planning
forward planning
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from our local perspective, we can identify rough
we identify simple
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that are particularly natural
and foresight, driven by the local viewpoint
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under a minimal form of contingent reasoning, related to independence of irrelevant alternatives
in locally dominant actions under these simple forms of reasoning