Rational Robustness for Mechanism Design
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MIT-CSAIL-TR-2009-057.pdf
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348.41 KB
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Author(s) •
Micali, Silvio
Chen, Jing
Advisor(s)
Silvio Micali
Date Issued
November 10, 2009
Series/Report no.
MIT-CSAIL-TR-2009-057
Abstract
The currently prevailing equilibrium-based approach to mechanism design suffers from a plurality of fundamental problems, and new conceptual frameworks are needed to solve or sufficiently alleviate them. In this paper, we put forward rational robustness, a new solution concept/implementation notion that is not equilibrium-based; prove its fundamental structural theorems; and compare it with prior notions. Our notion of implementation is specifically built so as to be robust against the problem of equilibrium selection. We prove it robust against other fundamental problems as well in different papers.
Description
first draft
Subjects
Mechanism Design, Implementation, Rational Robustness, Distinguishably Dominated Strategies
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