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agents in society. The implementation problem is then formulated: under what circumstances can one design a mechanism so that …. The theory of implementation or mechanism design formalizes this “social engineering” problem and provides answers to the … question just posed. I survey the theory of implementation in this article, emphasizing the results based on two behavioral …
Persistent link: https://www.econbiz.de/10010318948
The mainstream model of option pricing is based on an exogenously given process of price movements. The implication of this assumption is that price movements are not affected by actions of market participants. However, if we assume that there are indeed impacts on the price movements it no...
Persistent link: https://www.econbiz.de/10010301361
We study the design of mechanisms that implement Lindahl or Walrasian allocations and whose Nash equilibria are … dynamically stable for a wide class of adaptive dynamics. We argue that supermodularity is not a desirable stability criterion in … this mechanism design context, focusing instead on contractive mechanisms. We provide necessary and sufficient conditions …
Persistent link: https://www.econbiz.de/10011599472
We consider general two-sided matching markets, so-called matching with contracts markets as introduced by Hatfield and … Milgrom (2005), and analyze (Maskin) monotonic and Nash implementable solutions. We show that for matching with contracts …
Persistent link: https://www.econbiz.de/10010272554
between stability and (in)existence of multiple symmetric equilibria. While there is an equivalence between stability … relationship breaks down in higher dimensions. Stability under symmetric adjustments is a minimum requirement of a symmetric …
Persistent link: https://www.econbiz.de/10010316848
This survey deals with two-sided matching markets where one set of agents (workers/residents) has to be matched with … recent contributions to a complex and representative case of matching with complementarities, namely matching markets with …
Persistent link: https://www.econbiz.de/10010494484
A budget-constrained buyer wants to purchase items from a short-listed set. Items are differentiated by observable quality and sellers have private reserve prices for their items. The buyer's problem is to select a subset of maximal quality. Money does not enter the buyer's objective function,...
Persistent link: https://www.econbiz.de/10010334028
. With random matching, subjects overwhelmingly follow the dominant strategy to exaggerate their preferences, which leads to … interaction in different settings, which could allow endogenous linking mechanisms to evolve. We find that applying the exogenous …
Persistent link: https://www.econbiz.de/10010299751
A coalitional matching is a two-sided matching problem in which agents on each side of the market may form coalitions …
Persistent link: https://www.econbiz.de/10010270953
equilibrium and subgame perfect equilibrium. Part IV (Chapters 17-20) gives a taste of the topics of mechanism design, matching …
Persistent link: https://www.econbiz.de/10014280308