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BIDDING FOR THE SURPLUS: REALIZING EFFICIENT OUTCOMES IN GENERAL ECONOMIC ENVIRONMENTS
Category: Economic Theory
Mechanism Design Sunday 25th August 2002, 09:30 - 11:00, Room: 4.6
Session Chair(s):
David Wettstein, Ben Gurion University, ISRAEL
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Abstract:
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In this paper, we consider two classes of economic environments. In
the first type, agents are faced with the task of providing local public
goods that will benefit some or all of them. In the second type, economic
activity takes place via formation of links. Agents need to both
form a network and to decide how to share the output generated. For
both scenarios, we suggest a bidding mechanism whereby agents bid
for the right to decide upon the organization of economic activity. The
subgame perfect equilibria of this game generate efficient outcomes.
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Find this file in the \Papers\1089\ folder of this CD-ROM.
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