Double Implementation in a Market for Indivisible Goods with a Price Constraint

I consider the problem of assigning agents to objects where each agent must pay the price of the object he gets and prices must sum to a given number. The objective is to select an assignment-price pair that is envy-free with respect to the true preferences. I prove that the proposed mechanism will implement both in Nash and strong Nash the set of envy-free allocations. The distinguishing feature of the mechanism is that it treats the announced preferences as the true ones and selects an envy-free allocation with respect to the announced preferences.Indivisible Goods, Envy-Freeness, Implementation, Strong Nash Equilibrium

Double implementation in a market for indivisible goods with a price constraint

I consider the problem of assigning agents to objects where each agent must pay the price of the object he gets and prices must sum to a given number. The objective is to select an assignment-price pair that is envy-free with respect to the true preferences. I prove that the proposed mechanism will implement both in Nash and strong Nash the set of envy-free allocations. The distinguishing feature of the mechanism is that it treats the announced preferences as the true ones and selects an envy-free allocation with respect to the announced preferences

Double implementation in a market for indivisible goods with a price constraint

I consider the problem of assigning agents to indivisible objects, in which each agent pays a price for his object and all prices sum to a given constant. The objective is to select an assignment-price pair that is envy- free with respect to the agents' true preferences. I propose a simple mechanism whereby agents announce valuations for all objects and an envy-free allocation is selected with respect to these announced preferences. I prove that the proposed mechanism implements both in Nash and strong Nash equilibrium the set of true envy-free allocations

Implementation of the Walrassian Correspondance by Market Games

In this paper we present a set ofaxioms guaranteeing that, in exchange economies with or without indivisible goods, the set of Nash, Strong and active Walrasian Equilibria aH coincide in the framework of market games

Distributed Channel Assignment in Cognitive Radio Networks: Stable Matching and Walrasian Equilibrium

We consider a set of secondary transmitter-receiver pairs in a cognitive radio setting. Based on channel sensing and access performances, we consider the problem of assigning channels orthogonally to secondary users through distributed coordination and cooperation algorithms. Two economic models are applied for this purpose: matching markets and competitive markets. In the matching market model, secondary users and channels build two agent sets. We implement a stable matching algorithm in which each secondary user, based on his achievable rate, proposes to the coordinator to be matched with desirable channels. The coordinator accepts or rejects the proposals based on the channel preferences which depend on interference from the secondary user. The coordination algorithm is of low complexity and can adapt to network dynamics. In the competitive market model, channels are associated with prices and secondary users are endowed with monetary budget. Each secondary user, based on his utility function and current channel prices, demands a set of channels. A Walrasian equilibrium maximizes the sum utility and equates the channel demand to their supply. We prove the existence of Walrasian equilibrium and propose a cooperative mechanism to reach it. The performance and complexity of the proposed solutions are illustrated by numerical simulations.Comment: submitted to IEEE Transactions on Wireless Communicaitons, 13 pages, 10 figures, 4 table

"When Should Manufacturers Want Fair Trade?": New Insights from Asymmetric Information

We study a specific model of competing manufacturer-retailer pairs where adverse selection and moral hazard are coupled with non-market externalities at the downstream level. In this simple framework we show that a “laissez- faire" approach towards vertical price control might harm consumers as long as privately informed retailers impose non-market externalities on each other. Giving manufacturers freedom to control retail prices harms consumers when retailers impose positive non-market externalities on each other, and the converse is true otherwise. Moreover, in contrast to previous work, we show that, in these instances, consumers' and suppliers' preferences over contractual choices are not necessarily aligned.Competing hierarchies, resale price maintenance, retail externalities

New Monetarist Economics: models

The purpose of this paper is to discuss some of the models used in New Monetarist Economics, which is our label for a body of recent work on money, banking, payments systems, asset markets, and related topics. A key principle in New Monetarism is that solid microfoundations are critical for understanding monetary issues. We survey recent papers on monetary theory, showing how they build on common foundations. We then lay out a tractable benchmark version of the model that allows us to address a variety of issues. We use it to analyze some classic economic topics, like the welfare effects of inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model in new ways, and show how it can be used to generate new insights in the study of payments, banking, and asset markets.Money ; Monetary policy

A Bayesian Incentive Compatible Mechanism for Fair Division

We consider the problem of fairly allocating one indivisible object when monetary transfers are possible, and examine the existence of Bayesian incentive compatible mechanisms to solve the problem. We propose a mechanism that satisfies envy-freeness, budget balancedness, and Bayesian incentive compatibility. Further, we establish the uniqueness of the mechanism under an order additivity condition. This result contrasts well with various results on the incompatibility between efficiency and ex post incentive compatibility.

Sticky prices: a new monetarist approach

Why do some sellers set nominal prices that apparently do not respond to changes in the aggregate price level? In many models, prices are sticky by assumption; here it is a result. We use search theory, with two consequences: prices are set in dollars, since money is the medium of exchange; and equilibrium implies a nondegenerate price distribution. When the money supply increases, some sellers may keep prices constant, earning less per unit but making it up on volume, so profit stays constant. The calibrated model matches price-change data well. But, in contrast with other sticky-price models, money is neutral.

The Housing Market(s) of San Diego

This paper uses an assignment model to understand the cross section of house prices within a metro area. Movers’ demand for housing is derived from a lifecycle problem with credit market frictions. Equilibrium house prices adjust to assign houses that differ by quality to movers who differ by age, income and wealth. To quantify the model, we measure distributions of house prices, house qualities and mover characteristics from micro data on San Diego County during the 2000s boom. The main result is that cheaper credit for poor households was a major driver of prices, especially at the low end of the market.