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Market Design
Market design is an interdisciplinary, ilgrom Nemmers Prize Presentation Slides, 2008 engineering-driven approach to economics and a practical methodology for creation of markets of certain properties, which is partially based on mechanism design. In market design, the focus is on the rules of exchange, meaning who gets allocated what and by what procedure. Market design is concerned with the workings of particular markets in order to fix them when they are broken or to build markets when they are missing. Practical applications of market design theory has included labor market matching (e.g. the national residency match program), organ transplantation, school choice, university admissions, and more. Auction theory Early research on auctions focused on two special cases: common value auctions in which buyers have private signals of an items true value and private value auctions in which values are identically and independently distributed. Milgrom and Weber (1982) present a much m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mechanism Design
Mechanism design (sometimes implementation theory or institution design) is a branch of economics and game theory. It studies how to construct rules—called Game form, mechanisms or institutions—that produce good outcomes according to Social welfare function, some predefined metric, even when the designer does not know the players' true preferences or what information they have. Mechanism design thus focuses on the study of solution concepts for a class of private-information games. Mechanism design has broad applications, including traditional domains of economics such as market design, but also political science (through voting theory). It is a foundational component in the operation of the internet, being used in networked systems (such as inter-domain routing), e-commerce, and Sponsored search auction, advertisement auctions by Facebook and Google. Because it starts with the end of the game (a particular result), then works backwards to find a game that implements it, it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lattice (order)
A lattice is an abstract structure studied in the mathematical subdisciplines of order theory and abstract algebra. It consists of a partially ordered set in which every pair of elements has a unique supremum (also called a least upper bound or join (mathematics), join) and a unique infimum (also called a greatest lower bound or meet (mathematics), meet). An example is given by the power set of a set, partially ordered by Subset, inclusion, for which the supremum is the Union (set theory), union and the infimum is the Intersection (set theory), intersection. Another example is given by the natural numbers, partially ordered by divisibility, for which the supremum is the least common multiple and the infimum is the greatest common divisor. Lattices can also be characterized as algebraic structures satisfying certain axiomatic Identity (mathematics), identities. Since the two definitions are equivalent, lattice theory draws on both order theory and universal algebra. Semilatti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mathematical And Quantitative Methods (economics)
Mathematics is a field of study that discovers and organizes methods, theories and theorems that are developed and proved for the needs of empirical sciences and mathematics itself. There are many areas of mathematics, which include number theory (the study of numbers), algebra (the study of formulas and related structures), geometry (the study of shapes and spaces that contain them), analysis (the study of continuous changes), and set theory (presently used as a foundation for all mathematics). Mathematics involves the description and manipulation of abstract objects that consist of either abstractions from nature orin modern mathematicspurely abstract entities that are stipulated to have certain properties, called axioms. Mathematics uses pure reason to prove properties of objects, a ''proof'' consisting of a succession of applications of deductive rules to already established results. These results include previously proved theorems, axioms, andin case of abstracti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Labour Economics
Labour economics seeks to understand the functioning and dynamics of the Market (economics), markets for wage labour. Labour (human activity), Labour is a commodity that is supplied by labourers, usually in exchange for a wage paid by demanding firms. Because these labourers exist as parts of a social, institutional, or political system, labour economics must also account for social, cultural and political variables. Labour markets or job markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income. These patterns exist because each individual in the market is presumed to make rational choices based on the information that they know regarding wage, desire to provide labour, and desire for leisure. Labour markets are normally geographically bounded, but the rise of the internet ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Theories
Economics () is a behavioral science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as basic elements within economies, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and investment expenditure interact; and the factors of production affecting them, such as: labour, capital, land, and enterprise, inflation, economic growth, and public policies that impact these elements. It also seeks to analyse and describe the global economy. Other broad distinctions within economics include those between positive economics, describing "what is", and normative economics, advocatin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Auction Theory
Auction theory is a branch of applied economics that deals with how bidders act in auctions and researches how the features of auctions Incentivisation, incentivise predictable outcomes. Auction theory is a tool used to inform the design of real-world auctions. Sellers use auction theory to raise higher revenues while allowing buyers to procure at a lower cost. The confluence of the price between the buyer and seller is an economic equilibrium. Auction theorists design rules for auctions to address issues that can lead to market failure. The design of these rulesets encourages optimal bidding strategies in a variety of informational settings. The 2020 Nobel Prize for Economics was awarded to Paul R. Milgrom and Robert B. Wilson "for improvements to auction theory and inventions of new Auction#Types, auction formats." Introduction Auctions facilitate transactions by enforcing a specific set of rules regarding the resource allocations of a group of bidders. Theorists consider auctio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Designing Economic Mechanisms
''Designing Economic Mechanisms'' is a 2006 book by economists Leonid Hurwicz and Stanley Reiter. Hurwicz received the 2007 Nobel Memorial Prize in Economic Sciences with Eric Maskin and Roger Myerson for their work on mechanism design. In this book, Hurwicz and Reiter presented systematic methods for designing decentralized economic mechanisms whose performance attains specified goals. Summary The authors of this book, Leonid Hurwicz and Stanley Reiter, helped found the field of mechanism design. This book provides a guide for those who would design mechanisms. A decentralized mechanism is a mathematical structure that models institutions for guiding and coordinating economic activity. Such institution An institution is a humanly devised structure of rules and norms that shape and constrain social behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions and ...s are usually created by a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Doubly Stochastic Matrix
In mathematics, especially in probability and combinatorics, a doubly stochastic matrix (also called bistochastic matrix) is a square matrix X=(x_) of nonnegative real numbers, each of whose rows and columns sums to 1, i.e., :\sum_i x_=\sum_j x_=1, Thus, a doubly stochastic matrix is both left stochastic and right stochastic. Indeed, any matrix that is both left and right stochastic must be square: if every row sums to 1 then the sum of all entries in the matrix must be equal to the number of rows, and since the same holds for columns, the number of rows and columns must be equal. Birkhoff polytope The class of n\times n doubly stochastic matrices is a convex polytope known as the Birkhoff polytope B_n. Using the matrix entries as Cartesian coordinates, it lies in an (n-1)^2-dimensional affine subspace of n^2-dimensional Euclidean space defined by 2n-1 independent linear constraints specifying that the row and column sums all equal 1. (There are 2n-1 constraints rather than 2 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Spectrum Auction
A spectrum auction is a process whereby a government uses an auction system to sell the rights to transmit signals over specific bands of the electromagnetic spectrum and to assign scarce spectrum resources. Depending on the specific auction format used, a spectrum auction can last from a single day to several months from the opening bid to the final winning bid. With a well-designed auction, resources are allocated efficiently to the parties that value them the most, the government securing revenue in the process. Spectrum auctions are a step toward market-based spectrum management and privatization of public airwaves, and are a way for governments to allocate scarce resources. Alternatives to auctions include administrative licensing, such as the comparative hearings conducted historically (sometimes referred to as "beauty contests"), or lotteries. Innovation In the past decade, telecommunications has turned into a highly competitive industry where companies are competing to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Policy
Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organization. Policies can assist in both ''subjective'' and ''objective'' decision making. Policies used in subjective decision-making usually assist senior management with decisions that must be based on the relative merits of a number of factors, and as a result, are often hard to test objectively, e.g. work–life balance policy. Moreover, governments and other institutions have policies in the form of laws, regulations, procedures, administrative actions, incentives and voluntary practices. Frequently, resource allocations mirror policy decisions. Policies intended to assist in objective decision-making are usually operational in nature and can be objectively tested, e.g. a password policy. The term may apply to government, public sector ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Knaster–Tarski Theorem
In the mathematical areas of order and lattice theory, the Knaster–Tarski theorem, named after Bronisław Knaster and Alfred Tarski, states the following: :''Let'' (''L'', ≤) ''be a complete lattice and let f : L → L be an order-preserving (monotonic) function w.r.t. ≤. Then the set of fixed points of f in L forms a complete lattice under ≤.'' It was Tarski who stated the result in its most general form, and so the theorem is often known as Tarski's fixed-point theorem. Some time earlier, Knaster and Tarski established the result for the special case where ''L'' is the lattice of subsets of a set, the power set lattice. The theorem has important applications in formal semantics of programming languages and abstract interpretation, as well as in game theory. A kind of converse of this theorem was proved by Anne C. Davis: If every order-preserving function ''f'' : ''L'' → ''L'' on a lattice ''L'' has a fixed point, then ''L'' is a complete lattice. Consequences: ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lloyd Shapley
Lloyd Stowell Shapley (; June 2, 1923 – March 12, 2016) was an American mathematician and Nobel Memorial Prize-winning economist. He contributed to the fields of mathematical economics and especially game theory. Shapley is generally considered one of the most important contributors to the development of game theory since the work of von Neumann and Morgenstern. With Alvin E. Roth, Shapley won the 2012 Nobel Memorial Prize in Economic Sciences "for the theory of stable allocations and the practice of market design." Life and career Lloyd Shapley was born on June 2, 1923, in Cambridge, Massachusetts, one of the sons of astronomers Harlow Shapley and Martha Betz Shapley, both from Missouri. He attended Phillips Exeter Academy and was a student at Harvard when he was drafted in 1943. He served in the United States Army Air Corps in Chengdu, China and received the Bronze Star decoration for breaking the Soviet weather code. After the war, Shapley returned to Harvard and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
