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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] |
Stanley Reiter MDdiagram
Stanley may refer to: Arts and entertainment Film and television * ''Stanley'' (1972 film), an American horror film * ''Stanley'' (1984 film), an Australian comedy * ''Stanley'' (1999 film), an animated short * ''Stanley'' (1956 TV series), an American situation comedy * ''Stanley'' (2001 TV series), an American animated series Other uses in arts and entertainment * ''Stanley'' (play), by Pam Gems, 1996 * Stanley Award, an Australian Cartoonists' Association award * '' Stanley: The Search for Dr. Livingston'', a video game Businesses * Stanley, Inc., an American information technology company * Stanley Aviation, an American aerospace company * Stanley Black & Decker, formerly The Stanley Works, an American hardware manufacturer ** Stanley Hand Tools, a division of Stanley Black & Decker * Stanley bottle, a brand of food and beverage containers * Stanley Electric, a Japanese manufacturer of electric lights * Stanley Furniture, an American furniture manufacturer * T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nobel Memorial Prize In Economic Sciences
The Nobel Memorial Prize in Economic Sciences, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (), commonly referred to as the Nobel Prize in Economics(), is an award in the field of economic sciences administered by the Nobel Foundation, established in 1968 by Sveriges Riksbank (Sweden's central bank) to celebrate its 300th anniversary and in memory of Alfred Nobel. Although the Prize in Economic Sciences was not one of the original five Nobel Prizes established by Alfred Nobel's will, it is considered a member of the Nobel Prize system, and is administered and referred to along with the Nobel Prizes by the Nobel Foundation. Winners of the Prize in Economic Sciences are chosen in a similar manner to and announced alongside the Nobel Prize recipients, and receive the Prize in Economic Sciences at the Nobel Prize Award Ceremony. The laureates of the Prize in Economic Sciences are selected by the Royal Swedish Academy of Sciences, which ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Margarine
Margarine (, also , ) is a Spread (food), spread used for flavoring, baking, and cooking. It is most often used as a substitute for butter. Although originally made from animal fats, most margarine consumed today is made from vegetable oil. The spread was originally named ''oleomargarine'' from Latin for ''oleum'' (olive oil) and Greek language, Greek ''margarite'' ("pearl", indicating luster). The name was later shortened to ''margarine'', or sometimes ''oleo'' (particularly in the Deep South). Margarine consists of a water-in-fat emulsion, with tiny droplets of water dispersed uniformly throughout a fat phase (chemistry), phase in a stable solid form. While butter is made by concentrating the butterfat of milk through centrifugation, modern margarine is made through a more intensive processing of refined vegetable oil and water. Per US federal regulation, products must have a minimum fat content of 80% (with a maximum of 16% water) to be labeled as such in the United States, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Butter
Butter is a dairy product made from the fat and protein components of Churning (butter), churned cream. It is a semi-solid emulsion at room temperature, consisting of approximately 81% butterfat. It is used at room temperature as a spread (food), spread, melted as a condiment, and used as a Cooking fat, fat in baking, sauce-making, pan frying, and other cooking procedures. Most frequently made from cow's milk, butter can also be manufactured from the milk of other mammals, including Sheep milk, sheep, Goat milk, goats, Buffalo milk, buffalo, and Yak milk, yaks. It is made by churning milk or cream to separate the fat globules from the buttermilk. Dairy salt, Salt has been added to butter since antiquity to help Food preservation, preserve it, particularly when being transported; salt may still play a preservation role but is less important today as the entire supply chain is usually refrigerated. In modern times, salt may be added for taste and food coloring added for color. Kit ... [...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] |
Marginal Rate Of Substitution
In economics, the marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels (assuming no externalities), marginal rates of substitution are identical. The marginal rate of substitution is one of the three factors from marginal productivity, the others being marginal rates of transformation and marginal productivity of a factor. As the slope of indifference curve Under the standard assumption of neoclassical economics that goods and services are continuously divisible, the marginal rates of substitution will be the same regardless of the direction of exchange, and will correspond to the slope of an indifference curve (more precisely, to the slope multiplied by −1) passing through the consumption bundle in question, at that point: mathematically, it is the implicit derivative. MRS of X for Y is the amount of Y which a consumer c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Individual Rationality
Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits.Gary Browning, Abigail Halcli, Frank Webster (2000). ''Understanding Contemporary Society: Theories of the Present'', London: Sage Publications. Rational choice models are most closely associated with economics, where mathematical analysis of behavior is standard. However, they are widely used throughout the social sciences, and are commonly applied to cognitive science, criminology, political science, and sociology. Overview The basic premise of rational choice theory is that the decisions made by individual actors will collectively produce aggregate social behaviour. The theory also assumes that individuals have preferences out of available choice ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Incentive Compatibility
In game theory and economics, a mechanism is called incentive-compatible (IC) if every participant can achieve their own best outcome by reporting their true preferences. For example, there is incentive compatibility if high-risk clients are better off in identifying themselves as high-risk to insurance firms, who only sell discounted insurance to high-risk clients. Likewise, they would be worse off if they pretend to be low-risk. Low-risk clients who pretend to be high-risk would also be worse off. The concept is attributed to the Russian-born American economist Leonid Hurwicz. Typology There are several different degrees of incentive-compatibility: * The stronger degree is dominant-strategy incentive-compatibility (DSIC). This means that truth-telling is a weakly-dominant strategy, i.e. you fare best or at least not worse by being truthful, regardless of what the others do. In a DSIC mechanism, strategic considerations cannot help any agent achieve better outcomes than the tru ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bayesian Nash Equilibrium
In game theory, a Bayesian game is a strategic decision-making model which assumes players have incomplete information. Players may hold private information relevant to the game, meaning that the payoffs are not common knowledge. Bayesian games model the outcome of player interactions using aspects of Bayesian probability. They are notable because they allowed the specification of the solutions to games with incomplete information for the first time in game theory. Hungarian economist John C. Harsanyi introduced the concept of Bayesian games in three papers from 1967 and 1968: He was awarded the Nobel Memorial Prize in Economic Sciences for these and other contributions to game theory in 1994. Roughly speaking, Harsanyi defined Bayesian games in the following way: players are assigned a set of characteristics by nature at the start of the game. By mapping probability distributions to these characteristics and by calculating the outcome of the game using Bayesian probability, the r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Choice Function
In welfare economics and social choice theory, a social welfare function—also called a social ordering, ranking, utility, or choice function—is a function that ranks a set of social states by their desirability. Each person's preferences are combined in some way to determine which outcome is considered better by society as a whole. It can be seen as mathematically formalizing Rousseau's idea of a general will. Social choice functions are studied by economists as a way to identify socially-optimal decisions, giving a procedure to rigorously define which of two outcomes should be considered better for society as a whole (e.g. to compare two different possible income distributions). They are also used by democratic governments to choose between several options in elections, based on the preferences of voters; in this context, a social choice function is typically referred to as an electoral system. The notion of social utility is analogous to the notion of a utility fun ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revelation Principle
The revelation principle is a fundamental result in mechanism design, social choice theory, and game theory which shows it is always possible to design a strategy-resistant implementation of a Social welfare function, social decision-making mechanism (such as an electoral system or Market (economics), market).Gibbard, A. 1973. Manipulation of voting schemes: a general result. Econometrica 41, 587–601. It can be seen as a kind of mirror image to Gibbard's theorem. The revelation principle says that if a social choice function can be implemented with some non-honest Mechanism design, mechanism—one where players have an incentive to lie—the same function can be implemented by an Incentive compatibility, incentive-compatible (honesty-promoting) mechanism with the same equilibrium outcome (payoffs). The revelation principle shows that, while Gibbard's theorem proves it is impossible to design a system that will always be fully invulnerable to strategy (if we do not know how playe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
William Vickrey
William Spencer Vickrey (21 June 1914 – 11 October 1996) was a Canadian-American professor of economics and Nobel Laureate. He was a lifelong faculty member at Columbia University. A theorist who worked on public economics and mechanism design, Vickrey primarily discussed public policy problems. He originated the Vickrey auction, introduced the concept of congestion pricing in networks, formalized arguments for marginal cost pricing, and contributed to optimal income taxation. James Tobin described him as "an applied economist’s theorist, as well as a theorist’s applied economist.” Vickrey was awarded the 1996 Nobel Memorial Prize in Economic Sciences with James Mirrlees for their research into the economic theory of incentives under asymmetric information. Vickrey never personally received the Prize; it was announced just three days prior to his death. Early years Vickrey was born in Victoria, British Columbia to Charles Vernon Vickrey, a Congregationalist minister, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
