Algorithmic Mechanism Design With Investment

S-Tier
Journal: Econometrica
Year: 2023
Volume: 91
Issue: 6
Pages: 1969-2003

Authors (5)

Score contribution per author:

1.609 = (α=2.01 / 5 authors) × 4.0x S-tier

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

Abstract

We study the investment incentives created by truthful mechanisms that allocate resources using approximation algorithms. Some approximation algorithms guarantee nearly 100% of the optimal welfare in the allocation problem but guarantee nothing when accounting for investment incentives. An algorithm's allocative and investment guarantees coincide if and only if its confirming negative externalities are sufficiently small. We introduce fast approximation algorithms for the knapsack problem that have no confirming negative externalities and guarantees close to 100% for both allocation and investment.

Technical Details

RePEc Handle
repec:wly:emetrp:v:91:y:2023:i:6:p:1969-2003
Journal Field
General
Author Count
5
Added to Database
2026-01-25