Honesty and Epistemological Implementation with Asymmetric Information

We investigate implementation of social choice functions with asymmetric information concerning the state from epistemological perspectives. While each agent is either selfish or honest, they do not expect other participants to be honest. Nevertheless, an honest agent may exist, not among the actual participants, but in their higher-order beliefs. We assume that “all agents are selfish” never happens to be common knowledge. We show a positive result in a wide range of asymmetric information environments: with a minor restriction on signal correlation called information diversity, any incentive compatible SCF is uniquely implementable in Bayesian Nash equilibrium. We use only detail-free mechanisms