I argue that the principal theoretical and practical drawbacks of Nash equilibrium as a solution concept are far less troublesome in problems of mechanism design than in most other applications of game theory.

Consider a model of location choice by two sorts of agents, called "buyers" and "sellers": In the first period agents simultaneously choose between two identical possible locations; following this, the agents at each location play some sort of game with the other agents there. Buyers prefer...

This paper studies the effect of randomness in per-period matching on the long-run outcome of non-equilibrium adaptive processes. If there are many matchings between each strategy revision, the randomness due to matching will be small; our question is when a very small noise due to matching has...