Home
About
Aims and Scope
Editorial Board
Submit
Archive
Search
Announcement
|
Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society
Dynamic Mechanism Design: An Elementary Introduction
Vol.32, No.2, June 2021, 92–121
|
|
Kiho Yoon
(Korea University)
|
|
|
|
Abstract
This paper introduces dynamic mechanism design in an elementary fashion. We first examine optimal dynamic mechanisms: We find necessary and sufficient conditions for perfect Bayesian incentive compatibility and formulate the optimal dynamic mechanism problem. We next examine efficient dynamic mechanisms: We establish the uniqueness of Groves mechanism and investigate budget balance of the dynamic pivot mechanism in some detail for a bilateral trading environment. This introduction reveals that many results and techniques of static mechanism design can be straightforwardly extended and adapted to the analysis of dynamic settings.
|
Keywords
Optimal Mechanism, Efficient Mechanism, Markov Process, Incentive Compatibility, Budget Balance |
JEL classification codes
C73, D47, D82 |
|
Links
KCI
KES
SCOPUS
MathJax
|