Definition Mechanisms With Transfers
definition formalized

Mechanisms With Transfers

A mechanism with transfers separates the allocation rule from the payment rule. Quasi-linear utility is supplied by combining the value of the selected allocation with the agent's payment.

The transfer interface can be viewed as a direct mechanism, as an induced strategic game, and as a source of DSIC and ex-post IR predicates specialized to quasi-linear utilities.

References

  • [AGT, Chapter 9, Section 9.3.2, Def. 9.14] Nisan, Roughgarden, Tardos, and Vazirani, Algorithmic Game Theory. Direct mechanisms with allocation and payment rules.
  • [AGT, Chapter 9, Sections 9.3.3-9.3.4] Nisan, Roughgarden, Tardos, and Vazirani, Algorithmic Game Theory. Quasi-linear utilities and VCG-style transfer mechanisms.

Used by auctions

[[mechanism_design.auction.basic.formats]] (basic auction formats use the transfer interface), [[mechanism_design.auction.basic.first_price_mechanism]] (first-price mechanism as a transfer mechanism), [[mechanism_design.auction.basic.second_price_mechanism]] (second-price mechanism as a transfer mechanism).

Provenance

  • Migrated from EconCSLib pull request 27, old blueprint label def:md_transfer_interface in blueprint/src/content.tex.

Used by

Also in