Communication in Economic Mechanisms
Communication in Economic Mechanisms
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经济机制沟通
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Thomas
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I. Segal;Susan Athey;Jonathan Levin;Eric Maskin;Paul R. Milgrom;Andy Postlewaite;Thomas
This chapter considers the problem of …nding allocations that satisfy certain social goals when economic agents have private information about their preferences. While economists have traditionally considered the problem of providing incentives for agents to fully reveal their preferences, such full revelation is often impractical or undesirable, for several reasons: (1) it may require a prohibitive amount of communication as measured in bits or real numbers, (2) it may be costly for agents to evaluate their complete preferences, and (3) the revealed information may be exploited by the designer or other agents. Thus, we consider the question: What is the minimal information that must be elicited from the agents in order to achieve the goals? Note that the question arises even if agents can be counted on to report truthfully. Segal (2005) shows that for a large class of social problems, any minimally informative way to verify that a given alternative is desirable is equivalent to giving each agent 0427770). I also thank my discussant, Roger Myerson, and the participants of too many seminars and conference presentations where some of the research surveyed in the chapter was presented. In particular, Sjostrom, and James Jordan for discussions related to this topic. Last but not least, I am indebted to my coauthors Noam Nisan and Ronald Fadel for helping clarify my understanding of the topics discussed in this chapter. 1 a " budget set " –a subset of the social alternatives (which could in general be described by personalized nonlinear prices), and asking each agent to verify that the proposed alternative is optimal to him within his budget set. Therefore, any communication mechanism that yields a solution to the social problem must also yield a supporting price equilibrium. This result formalizes Hayek's insight about the role of prices as minimal communication needed to solve the social coordination problems. The class of problems for which price revelation is necessary proves quite large. For example, it includes such social goals as exact or approximate e¢ ciency, voluntary participation, stability to group deviations, and some notions of fairness. For such goals, price revelation is necessary regardless of the preference domain, which allows for nonconvexities or discrete decisions (e.g., as in combinatorial auctions or matching problems). On the other hand, the particular form of prices to be used depends on the problem. Segal (2005) suggests an algorithm for deriving the form of price equilibria that verify …
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Shirai;Y.. Aspect. In P. C. Hogan (Ed.)
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Y.. Aspect. In P. C. Hogan (Ed.)