The paper analyzes the properties of cores with differential information, as economies converge to complete information. Two core concepts are investigated: the private core, in which agents’ net trades are measurable with respect to agents’ private information, and the incentive compatible core, in which coalitions of agents are restricted to incentive compatible allocations. ∗We wish to thank...

In this paper, we introduce the concept of dynamic pricing within the context of our previous Stackelberg network game model and view the ISP’s policy as an incentive policy, and the underlying game as a reverse Stackelberg game. We study this incentive-design problem under complete information as well as incomplete information. In both cases, we show that the game is not generally incentive co...

This paper analyses a small open economy that wants to borrow from abroad, cannot commit to repay debt but faces costs if it decides to default. The model generates analytical expressions for the impact of shocks on the incentive compatible level of debt. Debt reduction generated by severe output shocks is no more than a couple of percentage points. In contrast, shocks to world interest rates c...

Allocation and exchange of many discrete resources – such as kidneys or school seats – is conducted via direct mechanisms without monetary transfers. A primary concern in designing such mechanisms is the coordinated strategic behavior of market participants and its impact on resulting allocations. To assess the impact of this implementation constraint, we construct the full class of group domin...

The Bitcoin mining protocol has been intensively studied and widely adopted by many other cryptocurrencies. However, it has been shown that this protocol is not incentive compatible, because the selfish mining strategy enables a miner to gain unfair rewards. Existing defenses either demand fundamental changes to block validity rules or have little effect against a resourceful attacker. This pap...

Non-cooperative channel assignment, i.e., channel assignment for selfish wireless devices, is highly challenging, especially in multiple collision domains. In this paper, we study the problem of noncooperative multi-radio channel assignment in multiple collision domains and focus on the fairness issue. We first conduct an analysis of the fairness property of the system assuming no incentive-com...

This paper considers the problem of allocating kidneys to autonomous transplant candidates who may refuse a kidney in anticipation of a superior future kidney. Starting with the first-best case where candidates are non-autonomous, we represent the kidney allocation problem using a sequential stochastic assignment model. In this model, there are n transplant candidates to be allocated n kidneys ...

In [1] the use of VCG in matching markets is motivated by saying that in order to compute market clearing prices in a matching market, the auctioneer needs to know the true valuations of the bidders. Hence VCG and corresponding personalized prices are proposed as an incentive compatible mechanism. The same line of argument pops up in several lecture sheets and other documents related to courses...

We consider the problem of efficient mechanism design for multilateral trading of multiple goods with independent private types for players and incomplete information among them. The problem is partly motivated by an efficient resource allocation problem in communication networks where there are both buyers and sellers. In such a setting, ex post budget balance and individual rationality are ke...