Communication in Mechanism Design A Differential Approach [Paperback]

This book develops a calculus-based theory of communication in economic mechanisms.An important aspect of an economic mechanism is the communication among its participants that it requires, which complements other design features such as incentives and complexity. A calculus-based theory of communication in mechanisms is developed in this book.An important aspect of an economic mechanism is the communication among its participants that it requires, which complements other design features such as incentives and complexity. A calculus-based theory of communication in mechanisms is developed in this book.Mechanism design is the field of economics that treats institutions and procedures as variables that can be selected in order to achieve desired objectives. An important aspect of a mechanism is the communication among its participants that it requires, which complements other design features such as incentives and complexity. A calculus-based theory of communication in mechanisms is developed in this book. The value of a calculus-based approach lies in its familiarity as well as the insight into mechanisms that it provides. Results are developed concerning (i) a first order approach to the construction of mechanisms, (ii) the range of mechanisms that can be used to achieve a given objective, as well as (iii) lower bounds on the required communication.1. Introduction; 2. Classical concepts and results; 3. Applications to mechanisms; 4. Realizing a C mapping.Communication in Mechanism Design by Steve Williams is a contribution of major importance. This applies both to the role in advancing the topic of mechanism design for economic theorists as well as to the mathematical exposition which is accessible without compromising on content. The reformulation of the Frobenius Theorem, in a form suitable for applications in mechanism design, is Williams own and provides a crucial step forward. In his preface, Steve Williams says This text complements Hurwicz and Reitl“7