Double auction with interdependent values: Incentives and efficiency

Double auction with interdependent values: Incentives and efficiency

We study a double auction environment where buyers and sellers have interdependent valuations and multi-unit demand and supply. We propose a new mechanism which satisfies ex post incentive compatibility, individual rationality, feasibility, non-wastefulness, and no budget deficit. Moreover, this mechanism is asymptotically efficient in that the trade outcome in the mechanism converges to the ef...

Bargaining with Interdependent Values

A seller and a buyer bargain over the terms of trade for an object. The seller receives a perfect signal determining the value of the object to both players, while the buyer remains uninformed. We analyze the infinite horizon bargaining game in which the buyer makes all the offers. When the static incentive constraints permit first-best efficiency, then under some regularity conditions the outc...

Becoming Cybercriminals: Incentives in Networks with Interdependent Security - Incentives in Networks with Interdependent Security

We study users’ incentives to become cybercriminals when network security is interdependent. We present a game-theoretic model in which each player (i.e., network user) decides his type, honest or malicious. Honest users represent law-abiding network users, while malicious users represent cybercriminals. After deciding on their types, the users make their security choices. We will follow [29], ...

Efficient assignment with interdependent values

We study the “house allocation” problem in which n agents are assigned n objects, one for each agent, when the agents have interdependent values. We show that there exists no mechanism that is Pareto efficient and ex post incentive compatible, and the only mechanism that is group ex post incentive compatible is constant across states. By contrast, we demonstrate that a Pareto efficient and Baye...

Implementation with Interdependent Values∗ PRELIMINARY AND INCOMPLETE