Choosing Wisely: A Multibidding Approach.

A multibidding mechanism that is budget-balanced is developed to address the problem of choosing an efficient project alternative by a group of agents with conflicting interests, based on the Nash equilibria. Findings reveal that all Nash equilibrium outcomes of the mechanism are efficient, that is...

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Publicado en:American Economic Review Vol. 92; no. 5; pp. 1577 - 1588
Autores principales: Pérez-Castrillo, David, Wettstein, David
Formato: Artículo
Publicado: American Economic Association December 2002
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Choosing Wisely: A Multibidding Approach.
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          Pérez-Castrillo, David
          Wettstein, David
      su:
        Resource allocation -- Mathematical models
        Economics
        Game theory
        Economic equilibrium
        Social choice
        Mathematical models
      sug:
        subj:
          Resource allocation -- Mathematical models
          Economics
          Game theory
          Economic equilibrium
          Social choice
          Mathematical models
      ab: A multibidding mechanism that is budget-balanced is developed to address the problem of choosing an efficient project alternative by a group of agents with conflicting interests, based on the Nash equilibria. Findings reveal that all Nash equilibrium outcomes of the mechanism are efficient, that is, that the project chosen in equilibrium is efficient. A detailed analysis is provided of the structure of the equilibria outcomes and their ranking by the participating agents, and it is shown that, at equilibrium, each agent's payoff is at least that which he or she would expect in a situation where all the projects under consideration have the same probability of being developed. Findings imply that the complete-information framework of the mechanism enables the derivation of a powerful efficiency result and that it can serve as a benchmark for the study of environments with incomplete information.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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