Spring 2007:

Game Theory II

Fridays, 11:30-1:30, Room 517

 

 

Date

Topic

Homework

References

1

19-Jan

General introduction + introduction to dominant strategy implementation (Notes)

 

13, 17, 18, 23, 28

2

26-Jan

The Gibbard-Satterthwaite theorem (see Reny's paper, [25])

 

25, 28, 29

3

2-Feb

Matching + VCG mechanism (Notes)

Problem set 1

Solution 1

1, 15, 26

4

9-Feb

Nash implementation (see Benoit & Ok's paper, [4])

Implementation in Undominated Strategies: A Look at Bounded Mechanisms (Notes)

Problem set 2

Solution 2

4, 26, 23, 30

5

16-Feb

Virtual + subgame-perfect implementation (Notes)

Problem set 3

Solution 3

3, 23

6

23-Feb

Mechanism-design: Optimal mechanisms (Notes)

 

14, 20

7

2-Mar

Mechanism-design: Efficient mechanisms (Notes)

Problem set 4

Solution 4

5-7, 14, 21, 22

8

9-Mar

midterm

Midterm  

9

16-Mar

spring recess

   

10

23-Mar

Midterm solution (full extraction of the surplus, bayesian implementation and sequential screening)

Midterm solution

6, 11, 22, 31, 32

11

30-Mar

Common knowledge, common priors and speculative trade  (Notes)

Problem set 5

Solution 5

2, 19, 23, 27, 33

12

6-Apr

Common knowledge, common priors and speculative trade - cont.

Mechanism-design approach to speculative trade

 

2, 19, 23, 27, 33

10

13

13-Apr

Mechanism-design approach to speculative trade - cont.

Contract design with non-common priors

 

10

11

14

20-Apr

Contract design with non-common priors - cont.

 

11

15

27-Apr

Contract design with non-common priors - cont.

Contract design with dynamically inconsistent agents

Problem set 6

Solution 6

11

8, 9, 24

15 4-May Final    

References

[1] Atila Abdulkadiroğlu and Tayfun Sönmez (2003), “School Choice: A Mechanism Design Approach”, American Economic Review 93(3), pp. 729-747

[2] Robert Aumann (1976), "Agreeing to Disagree", Annals of Statistics 4, 1236-1239.

[3] Dilip Abreu and Hitoshi Matsushima (1992), "Virtual Implementation in Iterated Undominated Strategies: Complete Information", Econometrica 60 , 993-1008.

[4] Jean Pierre Benoit and Efe Ok (2006), "Maskin's Theorem, with Limited Veto Power", Games and Economic Behavior 55, 331-339.

[5] Peter Cramton, Robert Gibbons and Paul Klemperer (1987), "Dissolving a Partnership Efficiently", Econometrica 55(3), 615-632.

[6] Jacques Cremer and Richard McLean (1985), "Optimal Selling Strategies Under Uncertainty for a Discriminating Monopolist When Demands are Interdependent", Econometrica 53(2), 345-361.

[7] Jacques Cremer and Richard McLean (1988), "Full Extraction of the Surplus in Bayesian and Dominant Strategy Auctions", Econometrica 56(6), 1247-1257.

[8] Stephano Della Vigna and Ulrike Malmendier (2004), "Contract Design and Self-Control: Theory and Evidence", Quarterly Journal of Economics 119, 353-402.

[9] Kfir Eliaz and Ran Spiegler (2006), "Contracting with Diversely Naive Agents", Review of Economic Studies 73(3), 689-714.

[10] Kfir Eliaz and Ran Spiegler (2006), "A Mechanism-Design Approach to Speculative Trade", forthcoming in Econometrica.

[11] Kfir Eliaz and Ran Spiegler (2006), "Speculative Contracts", Mimeo, NYU.

[12] A. Gibbard (1973), "Manipulation of Voting Schemes: A General Result", Econometrica 41, 587-601.

[13] Matthew Jackson (2001), “A Crash Course in Implementation Theory”, Social Choice and Welfare 18(4), 655-708.

[14] Vijay Krishna (2002), Auction Theory, Academic Press.

[15] Herman B. Leonard (1983), "Elicitation of Honest Preferences for the Assignment of Individuals to Positions", Journal of Political Economy 91(3), 461-479.

[16] Eric Maskin (1999), "Nash Equilibrium and Welfare Optimality", Review of Economic Studies 66, 23-38.

[17] Eric Maskin and Tomas Sjöström (2001), “Implementation Theory”, forthcoming in the Handbook of Social Choice and Welfare, edited by K. Arrow, A. Sen and K. Suzumura, Amsterdam: North Holland, 1-12. Available at http://www.sss.ias.edu/papers/econpapersix.pdf

[18] John Moore (1992), “Implementation, Contracts and Renegotiation in Environments with Complete Information”, in Advances in Economic Theory, Volume 1, edited by J. J. Laffont, Cambridge: Cambridge University Press.

[19] Stephen Morris (1994), "Trade with Heterogeneous Beliefs and Asymmetric Information", Econometrica 62(6), 1327-1347.

[20] Roger Myerson (1981), "Optimal Auction Design", Mathematics of Operations Research 6, 58-73.

[21] Roger Myerson and Mark Satterthwaite (1983), "Efficient Mehanisms for Bilateral Trading", JET 28, 265-281.

[22] Zvika Neeman (2004), "The Relevance of Private Information in Mechanism Design", JET 117, 55-77.

[23] Martin J. Osborne and Ariel Rubinstein (1994), A Course in Game Theory, Cambridge: MIT Press, 177-180.

[24] Matthew Rabin and Ted O'Donoghue (1999), "Incentives for Procrastinators", Quarterly Journal of Economics 114(3), 769-816.

[25] Phil Reny (2001), "Arrow's Theorem and the Gibbard Satterthwaite Theorem: A Unified Approach", Economic Letters 70, 99-105.

[26] Alvin E. Roth and Marilda A. E. Sotomayor (1990), Two Sided Matching: A Study in Game-Theoretic Modeling and Analysis. New York: Cambridge University Press, pp. 202-215

[26] Ariel Rubinstein and Asher Wolinsky (1990), "On the Logic of 'Agreeing to Disagree' Type Results", Journal of Economic Theory 51(1), 184-193.

[28] Roberto Serrano (2004), "The Theory of Implementation of Social Choice Rules", SIAM Review 46(3), 377-414.

[29] Mark Satterthwaite (1975), "Strategy-Proofness and Arrow's Conditions: Existence and Correspondence Theorems for Voting Procedures and Social Welfare Functions", JET 10, 187-217.

[30] Matthew Jackson (1992), “Implementation in Undominated Strategies: A Look at Bounded Mechanisms”, Review of Economic Studies 89, 757-775.

[31] Courty, P. and H. Li (2000): "Sequential Screening", Review of Economic Studies 67(4), 697-718.

[32] Tom Palfrey (1992): "Implementation in Bayesian Equilibrium: The Multiple Equilibrium Problem in Mechanism Design", in Advances in Economic Theory, Volume 1, edited by J. J. Laffont, Cambridge: Cambridge University Press, 291-292.

[33] Dov Samet (1998): "Common Priors and Separation of Convex Sets", Games and Economic Behavior 24, 172-174.