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Bayesian incentive compatibility via matchings

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  • Hartline, Jason D.
  • Kleinberg, Robert
  • Malekian, Azarakhsh

Abstract

Optimally allocating cellphone spectrum, advertisements on the Internet, and landing slots at airports is computationally intractable. When the participants may strategize, not only must the optimizer deal with complex feasibility constraints but also with complex incentive constraints. We give a very simple method for constructing a Bayesian incentive compatible mechanism from any, potentially non-optimal, algorithm that maps agents' reports to an allocation. The expected welfare of the mechanism is, approximately, at least that of the algorithm on the agents' true preferences.

Suggested Citation

  • Hartline, Jason D. & Kleinberg, Robert & Malekian, Azarakhsh, 2015. "Bayesian incentive compatibility via matchings," Games and Economic Behavior, Elsevier, vol. 92(C), pages 401-429.
    • Handle: RePEc:eee:gamebe:v:92:y:2015:i:c:p:401-429
    DOI: 10.1016/j.geb.2015.02.002
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    References listed on IDEAS

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    Cited by:

    1. Dworczak, Piotr & Zhang, Anthony Lee, 2017. "Implementability, Walrasian equilibria, and efficient matchings," Economics Letters, Elsevier, vol. 153(C), pages 57-60.
    2. Tim Roughgarden & Inbal Talgam-Cohen, 2018. "Approximately Optimal Mechanism Design," Papers 1812.11896, arXiv.org, revised Aug 2020.

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    More about this item

    Keywords

    Bayesian mechanism design; Algorithmic mechanism design; Incentive compatibility; Multi-dimensional preferences;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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