IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v92y2015icp401-429.html
   My bibliography  Save this article

Bayesian incentive compatibility via matchings

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825615000214
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.geb.2015.02.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gul, Faruk & Stacchetti, Ennio, 1999. "Walrasian Equilibrium with Gross Substitutes," Journal of Economic Theory, Elsevier, vol. 87(1), pages 95-124, July.
    2. Shuchi Chawla & Jason Hartline & David Malec & Balasubramanian Sivan, 2010. "Sequential Posted Pricing and Multi-parameter Mechanism Design," Discussion Papers 1486, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    4. Mark Armstrong, 1999. "Price Discrimination by a Many-Product Firm," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 151-168.
    5. Sergiu Hart & Noam Nisan, 2013. "The Menu-Size Complexity of Auctions," Discussion Paper Series dp637, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    6. Armstrong, Mark, 1996. "Multiproduct Nonlinear Pricing," Econometrica, Econometric Society, vol. 64(1), pages 51-75, January.
    7. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    8. Roger B. Myerson, 1981. "Optimal Auction Design," Mathematics of Operations Research, INFORMS, vol. 6(1), pages 58-73, February.
    9. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    10. Rochet, Jean-Charles, 1987. "A necessary and sufficient condition for rationalizability in a quasi-linear context," Journal of Mathematical Economics, Elsevier, vol. 16(2), pages 191-200, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

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

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azar, Pablo D. & Kleinberg, Robert & Weinberg, S. Matthew, 2019. "Prior independent mechanisms via prophet inequalities with limited information," Games and Economic Behavior, Elsevier, vol. 118(C), pages 511-532.
    2. Marek Pycia & Peter Troyan, 2023. "A Theory of Simplicity in Games and Mechanism Design," Econometrica, Econometric Society, vol. 91(4), pages 1495-1526, July.
    3. Vijay Krishna & Motty Perry, 1997. "Efficient Mechanism Design," Game Theory and Information 9703010, University Library of Munich, Germany, revised 28 Apr 1998.
    4. Tim Roughgarden & Inbal Talgam-Cohen, 2018. "Approximately Optimal Mechanism Design," Papers 1812.11896, arXiv.org, revised Aug 2020.
    5. Kazumura, Tomoya & Mishra, Debasis & Serizawa, Shigehiro, 2020. "Mechanism design without quasilinearity," Theoretical Economics, Econometric Society, vol. 15(2), May.
    6. Tomoya Kazumura & Shigehiro Serizawa, 2016. "Efficiency and strategy-proofness in object assignment problems with multi-demand preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 633-663, October.
    7. Georgiou, Konstantinos & Swamy, Chaitanya, 2019. "Black-box reductions for cost-sharing mechanism design," Games and Economic Behavior, Elsevier, vol. 113(C), pages 17-37.
    8. Jawad Abrache & Teodor Crainic & Michel Gendreau & Monia Rekik, 2007. "Combinatorial auctions," Annals of Operations Research, Springer, vol. 153(1), pages 131-164, September.
    9. Jehiel, Philippe & Meyer-ter-Vehn, Moritz & Moldovanu, Benny, 2007. "Mixed bundling auctions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 494-512, May.
    10. Tim Roughgarden & Inbal Talgam-Cohen & Qiqi Yan, 2019. "Robust Auctions for Revenue via Enhanced Competition," Operations Research, INFORMS, vol. 68(4), pages 1074-1094, July.
    11. Bin Li & Dong Hao & Dengji Zhao, 2020. "Incentive-Compatible Diffusion Auctions," Papers 2001.06975, arXiv.org, revised Apr 2020.
    12. Archer, Aaron & Kleinberg, Robert, 2014. "Truthful germs are contagious: A local-to-global characterization of truthfulness," Games and Economic Behavior, Elsevier, vol. 86(C), pages 340-366.
    13. Kwiek, Maksymilian, 2017. "Efficient voting with penalties," Games and Economic Behavior, Elsevier, vol. 104(C), pages 468-485.
    14. Carbajal, Juan Carlos & Ely, Jeffrey C., 2013. "Mechanism design without revenue equivalence," Journal of Economic Theory, Elsevier, vol. 148(1), pages 104-133.
    15. Heydenreich, B. & Mishra, D. & Müller, R.J. & Uetz, M.J., 2008. "Optimal mechanisms for single machine scheduling," Research Memorandum 033, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    16. Kazumura, Tomoya & Mishra, Debasis & Serizawa, Shigehiro, 2020. "Strategy-proof multi-object mechanism design: Ex-post revenue maximization with non-quasilinear preferences," Journal of Economic Theory, Elsevier, vol. 188(C).
    17. Nisan, Noam, 2015. "Algorithmic Mechanism Design," Handbook of Game Theory with Economic Applications,, Elsevier.
    18. Bergemann, Dirk & Pavan, Alessandro, 2015. "Introduction to Symposium on Dynamic Contracts and Mechanism Design," Journal of Economic Theory, Elsevier, vol. 159(PB), pages 679-701.
    19. Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, 2017. "Strategy-proof multi-object allocation: Ex-post revenue maximization with no wastage," Working Papers e116, Tokyo Center for Economic Research.
    20. Michael Curry & Tuomas Sandholm & John Dickerson, 2022. "Differentiable Economics for Randomized Affine Maximizer Auctions," Papers 2202.02872, arXiv.org.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:92:y:2015:i:c:p:401-429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.