Multilateral Deferred-Acceptance Mechanisms

Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9470)

Abstract

We study the design of multilateral markets, where agents with several different roles engage in trade. We first observe that the modular approach proposed by Dütting et al. [5] for bilateral markets can also be applied in multilateral markets. This gives a general method to design Deferred Acceptance mechanisms in such settings; these mechanisms, defined by Milgrom and Segal [10], are known to satisfy some highly desired properties.

We then show applications of this framework in the context of supply chains. We show how existing mechanisms can be implemented as multilateral Deferred Acceptance mechanisms, and thus exhibit nice practical properties (as group strategy-proofness and equivalence to clock auctions). We use the general framework to design a novel mechanism that improves upon previous mechanisms in terms of social welfare. Our mechanism manages to avoid “trade reduction” in some scenarios, while maintaining the incentive and budget-balance properties.

Notes

Acknowledgments

We thank Moshe Babaioff for helpful discussions. Liad Blumrosen was supported by the Israel Science Foundation (grant No. 230/10).

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Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Open Access This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Authors and Affiliations

  1. 1.Department of EconomicsThe Hebrew UniversityJerusalemIsrael
  2. 2.Bank of IsraelJerusalemIsrael

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