Price & Choose
Theoretical Economics
2023-04-25 v2
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.
Keywords
Cite
@article{arxiv.2212.05650,
title = {Price & Choose},
author = {Federico Echenique and Matías Núñez},
journal= {arXiv preprint arXiv:2212.05650},
year = {2023}
}