Presented By: Department of Economics
Algorithmic Mechanism Design with Investment
Paul Milgrom, Stanford University
We study the investment incentives created by truthful mechanisms that allocate resources using approximation algorithms. Some approximation algorithms guarantee nearly 100% of the optimal welfare, but have only a zero guarantee when one bidder can invest before participating. An algorithm’s worst-case allocative and investment guarantees coincide if and only if that algorithm’s confirming negative externalities are sufficiently small. We introduce new fast approximation algorithms for the knapsack problem that have no confirming negative externalities, with guarantees close to 100% both with and without investments.
March 24, 2023 (Friday) 2:30pm
Meeting ID: 93493464569
Meeting Password: theory
Explore Similar Events
Loading Similar Events...