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Mechanism design : a linear programming approach
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ISBN: 1107004365 0521179467 1139076191 9786613193230 0511835213 1139083023 1139070479 1139078488 128319323X 113908075X 1107714230 9781139078481 9780511835216 9781139083027 9781139080750 9781139080750 9781107004368 9780521179461 9781107714236 9781139076197 6613193232 9781139070478 Year: 2011 Publisher: Cambridge : Cambridge University Press,

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Abstract

Mechanism design is an analytical framework for thinking clearly and carefully about what exactly a given institution can achieve when the information necessary to make decisions is dispersed and privately held. This analysis provides an account of the underlying mathematics of mechanism design based on linear programming. Three advantages characterize the approach. The first is simplicity: arguments based on linear programming are both elementary and transparent. The second is unity: the machinery of linear programming provides a way to unify results from disparate areas of mechanism design. The third is reach: the technique offers the ability to solve problems that appear to be beyond solutions offered by traditional methods. No claim is made that the approach advocated should supplant traditional mathematical machinery. Rather, the approach represents an addition to the tools of the economic theorist who proposes to understand economic phenomena through the lens of mechanism design.

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