Bayesian Implementation

Bayesian Implementation
Author: Thomas R. Palfrey
Publisher: CRC Press
Total Pages: 122
Release: 2020-08-26
Genre: Business & Economics
ISBN: 1000111555

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The implementation problem lies at the heart of a theory of institutions. Simply stated, the aim of implementation theory is to investigate in a rigorous way the relationships between outcomes in a society and how those outcomes arise. The first part of "Bayesian Implementation" presents a basic model of the Bayesian implementation problem and summarizes and explains recent developments in this branch of implementation theory. Substantive problems of interest such as public goods provision, auctions and bargaining are special cases of the model, and these are addressed in subsequent chapters.

Essays on Applied Microeconomic Theory

Essays on Applied Microeconomic Theory
Author: Gabriel Alberto Martinez Roa
Publisher:
Total Pages: 0
Release: 2020
Genre:
ISBN:

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Chapter 1: Bayesian Persuasion in the Digital Age In digital platforms, agents have vast access to information, but the quality of it is unclear. This paper studies the impact of uncertainty about the quality of information as a Bayesian persuasion game with multiple senders. The model innovates by assuming the receiver samples only a small subset of the information available and whose quality uncertainty is endogenous. The receiver knows the signals chosen by each sender but randomly observes the realization of only one such signal. In equilibrium, senders can pool their signals, so the receiver is uncertain about the informativeness of the message received. Since pooling is prevalent, each sender chooses a signal to affect the average correlation between messages and states of the world. Thus, the strategies of other senders constrain each sender's ability to design information and may incentivize a sender to provide more or less information compared to the single-sender information design benchmark. The model suggests policies to improve the quality of the information on platforms such as social media. Chapter 2: Dynamic Trading in Decentralized Markets (with Marzena Rostek) Most financial assets are traded in multiple venues. We study a model of imperfectly competitive trading where agents have multiple opportunities to trade risky assets. We consider decentralized markets: the market comprises coexisting exchanges, each defined by a subset of traders and assets. We characterize the equilibrium dynamics of prices, trades, and price impact. Markets with the same prices, allocations, and price impact may differ in their dynamic efficiency properties depending on traders' participation in different exchanges. We provide necessary and sufficient conditions - based on trader participation alone - for markets to be dynamically efficient as trading becomes frequent. Decentralized markets for a single asset (or, more generally, standardized assets) are always dynamically efficient. For assets traded at low frequencies, even markets that are not dynamically efficient can give rise to higher total welfare than the centralized market. Increasing trading frequency can lower welfare due to the interaction of price impact and market incompleteness (i.e., limited participation in the exchanges). Chapter 3: Games among Groups (with Marzena Rostek and Ji Hee Yoon) In many social interactions, externalities and peer effects apply to groups rather than all agents. We model noncooperative games among a finite number of players who interact through any number of groups (a hypergraph). Groups endogenously change how the players value the interaction and contribute to it. Interaction through groups can realize a surplus that cannot be attained by a single group among the same players. Private clubs (interactions among some agents) can increase welfare if they are exclusive and not too prevalent. Different group interactions enhance equilibrium surplus through externality vs. risk-sharing motives.

Allowing Others to Learn

Allowing Others to Learn
Author: Vinit K. Jagdish
Publisher:
Total Pages: 232
Release: 2005
Genre: Bayesian statistical decision theory
ISBN:

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Bayesian Implementation

Bayesian Implementation
Author: Thomas R. Palfrey
Publisher:
Total Pages: 104
Release: 1993
Genre: Bayesian statistical decision theory
ISBN: 9780415269070

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On the Equivalence of Bayesian and Dominant Strategy Implementation for Environments with Non-Linear Utilities

On the Equivalence of Bayesian and Dominant Strategy Implementation for Environments with Non-Linear Utilities
Author: Alexey Kushnir
Publisher:
Total Pages: 30
Release: 2019
Genre:
ISBN:

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We extend the equivalence between Bayesian and dominant strategy implementation (Manelli and Vincent, Econometrica, 2010; Gershkov et al. Econometrica, 2013) to environments where agents have utilities that are non-linear in allocations and satisfy a convex-valued assumption. The new equivalence result produces novel implications to the literature on the principal-agent problem with allocative externalities, environmental mechanism design, and public good provision.

Twenty Lectures on Algorithmic Game Theory

Twenty Lectures on Algorithmic Game Theory
Author: Tim Roughgarden
Publisher: Cambridge University Press
Total Pages: 356
Release: 2016-08-30
Genre: Computers
ISBN: 1316781178

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Computer science and economics have engaged in a lively interaction over the past fifteen years, resulting in the new field of algorithmic game theory. Many problems that are central to modern computer science, ranging from resource allocation in large networks to online advertising, involve interactions between multiple self-interested parties. Economics and game theory offer a host of useful models and definitions to reason about such problems. The flow of ideas also travels in the other direction, and concepts from computer science are increasingly important in economics. This book grew out of the author's Stanford University course on algorithmic game theory, and aims to give students and other newcomers a quick and accessible introduction to many of the most important concepts in the field. The book also includes case studies on online advertising, wireless spectrum auctions, kidney exchange, and network management.

Political Game Theory

Political Game Theory
Author: Nolan McCarty
Publisher: Cambridge University Press
Total Pages: 0
Release: 2014-10-30
Genre: Political Science
ISBN: 9781107438637

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Political Game Theory is a self-contained introduction to game theory and its applications to political science. The book presents choice theory, social choice theory, static and dynamic games of complete information, static and dynamic games of incomplete information, repeated games, bargaining theory, mechanism design and a mathematical appendix covering, logic, real analysis, calculus and probability theory. The methods employed have many applications in various disciplines including comparative politics, international relations and American politics. Political Game Theory is tailored to students without extensive backgrounds in mathematics, and traditional economics, however there are also many special sections that present technical material that will appeal to more advanced students. A large number of exercises are also provided to practice the skills and techniques discussed.

Lecture Notes in Microeconomic Theory

Lecture Notes in Microeconomic Theory
Author: Ariel Rubinstein
Publisher: Princeton University Press
Total Pages: 167
Release: 2012-03-04
Genre: Business & Economics
ISBN: 0691154139

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Ariel Rubinstein's well-known lecture notes on microeconomics—now fully revised and expanded This book presents Ariel Rubinstein's lecture notes for the first part of his well-known graduate course in microeconomics. Developed during the fifteen years that Rubinstein taught the course at Tel Aviv University, Princeton University, and New York University, these notes provide a critical assessment of models of rational economic agents, and are an invaluable supplement to any primary textbook in microeconomic theory. In this fully revised and expanded second edition, Rubinstein retains the striking originality and deep simplicity that characterize his famously engaging style of teaching. He presents these lecture notes with a precision that gets to the core of the material, and he places special emphasis on the interpretation of key concepts. Rubinstein brings this concise book thoroughly up to date, covering topics like modern choice theory and including dozens of original new problems. Written by one of the world's most respected and provocative economic theorists, this second edition of Lecture Notes in Microeconomic Theory is essential reading for students, teachers, and research economists. Fully revised, expanded, and updated Retains the engaging style and method of Rubinstein's well-known lectures Covers topics like modern choice theory Features numerous original new problems—including 21 new review problems Solutions manual (available only to teachers) can be found at: http://gametheory.tau.ac.il/microTheory/.