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MechanismDesignBased.pdf
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🔗 Source: strategicreasoning.org
📊 Size: 77 KB
📄 Pages: 5 pages
⬇️ Downloads: 94

Summary

Mechanism design theory has limitations, as identifying a solution concept doesn't completely specify a mechanism design problem. The designer must consider which solution is likely to be played and the possibility that actual play won't correspond to any solution. The authors advocate for embracing the forecasting problem and evaluating candidate mechanisms with respect to belief distributions over players' responses. Solution concepts can help structure belief distributions, and flexible solution classes can provide measures to define these distributions. The key issue is constructing reasonable probability distributions, which can be done by defining parameterized versions of solution concepts or capturing uncertainty in the underlying model of strategic interactions.

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Mechanism design theory has limitations, as identifying a solution concept doesn't completely specify a mechanism design problem.

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  • File Format: PDF
  • File Size: 77 KB
  • Pages: 5
  • Language: EN
  • Total Downloads: 94
  • Last Updated: 2 weeks ago

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