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arXiv · 2212.05650

Price & Choose

Federico Echenique·Matías Núñez
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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.

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Federico Echenique, Matías Núñez. 2022-12-12. Price & Choose. https://arxiv.org/abs/2212.05650

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