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Price & Choose

Author

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  • Federico Echenique
  • Mat'ias N'u~nez

Abstract

We describe a two-stage mechanism that fully implements the set of efficient outcomes in two-agent environments with quasi-linear utilities. The mechanism asks one agent to set prices for each outcome, and the other agent to make a choice, paying the corresponding price: Price \& Choose. We extend our implementation result in three main directions: an arbitrary number of players, non-quasi linear utilities, and robustness to max-min behavior. Finally, we discuss how to reduce the payoff inequality between players while still achieving efficiency.

Suggested Citation

  • Federico Echenique & Mat'ias N'u~nez, 2022. "Price & Choose," Papers 2212.05650, arXiv.org, revised Apr 2023.
    • Handle: RePEc:arx:papers:2212.05650
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    1. Mariann Ollár & Antonio Penta, 2022. "Efficient Full Implementation via Transfers: Uniqueness and Sensitivity in Symmetric Environments," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 438-443, May.
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    More about this item

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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