Generalized Groves–Ledyard mechanisms

B-Tier
Journal: Games and Economic Behavior
Year: 2017
Volume: 101
Issue: C
Pages: 204-217

Authors (2)

Healy, Paul J. (not in RePEc) Jain, Ritesh (Academia Sinica)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Groves and Ledyard (1977) construct a mechanism for public goods procurement that can be viewed as a direct-revelation Groves mechanism in which agents announce a parameter of a quadratic approximation of their true preferences. The mechanism's Nash equilibrium outcomes are efficient. The budget is balanced because Groves mechanisms are balanced for the announced quadratic preferences. Tian (1996) subsequently discovered a richer set of budget-balancing preferences. We replicate the Groves–Ledyard construction using this expanded set of preferences, and uncover a new set of complex mechanisms that generalize the original Groves–Ledyard mechanism. The original mechanism, however, remains the most appealing in terms of both simplicity and stability.

Technical Details

RePEc Handle
repec:eee:gamebe:v:101:y:2017:i:c:p:204-217
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25