Videos

Algorithms, Approximation, and Learning in Market and Mechanism Design: "Mechanism Design for Humans"

Presenter
November 8, 2023
Keywords:
  • market design
  • mechanism design
  • auctions
  • matching
  • approximation
  • equilibrium analysis
  • algorithmic game theory
  • complexity
  • economic theory
  • discrete optimization
  • graph theory
  • mathematical programming
Abstract
We extend two classic settings in mechanism design with behavioral assumptions on the bidders' behavior. We first consider Walrasian equilibrium in combinatorial auctions with bidders that exhibit the endowment effect (e.g., their value for items increases with ownership). Next, we leverage results in behavioral economics on lying to design auctions for allocating a single item for bidders that will only lie about their value under certain conditions.