Report: 2007 and 2008

This booklet gives an overview of the research activities at the IAE (Institute for Economic Analysis) in 2007 and 2008. As a research institute of the CSIC (Higher Council for Scientific Research), the mission of the IAE is to produce policy-relevant research in economics with the highest standard of academic scholarship, and to train young researchers.N

Foundations of mechanism design: a tutorial Part 1- Key concepts and classical results

Mechanism design, an important tool in microeconomics, has found widespread applications in modelling and solving decentralized design problems in many branches of engineering, notably computer science, electronic commerce, and network economics. Mechanism design is concerned with settings where a social planner faces the problem of aggregating the announced preferences of multiple agents into a collective decision when the agents exhibit strategic behaviour. The objective of this paper is to provide a tutorial introduction to the foundations and key results in mechanism design theory. The paper is in two parts. Part 1 focuses on basic concepts and classical results which form the foundation of mechanism design theory. Part 2 presents key advanced concepts and deeper results in mechanism design

Logic and the Foundations of Game and Decision Theory (LOFT 7)

This volume collects together revised papers originally presented at the 7th Conference on Logic and the Foundations of Game and Decision Theory (LOFT 2006). LOFT is a key venue for presenting research at the intersection of logic, economics and computer science, and the present collection gives a lively and wide-ranging view of an exciting and rapidly growing area

Control room agents : an information-theoretic approach

In this thesis, a particular class of agent is singled out for examination. In order to provide a guiding metaphor, we speak of control room agents. Our focus is on rational decision- making by such agents, where the circumstances obtaining are such that rationality is bounded. Control room agents, whether human or non-human, need to reason and act in a changing environment with only limited information available to them. Determining the current state of the environment is a central concern for control room agents if they are to reason and act sensibly. A control room agent cannot plan its actions without having an internal representation (epistemic state) of its environment, and cannot make rational decisions unless this representation, to some level of accuracy, reflects the state of its environment. The focus of this thesis is on three aspects regarding the epistemic functioning of a control room agent: 1. How should the epistemic state of a control room agent be represented in order to facilitate logical analysis? 2. How should a control room agent change its epistemic state upon receiving new information? 3. How should a control room agent combine available information from different sources? In describing the class of control room agents as first-order intentional systems hav- ing both informational and motivational attitudes, an agent-oriented view is adopted. The central construct used in the information-theoretic approach, which is qualitative in nature, is the concept of a templated ordering. Representing the epistemic state of a control room agent by a (special form of) tem- plated ordering signals a departure from the many approaches in which only the beliefs of an agent are represented. Templated orderings allow for the representation of both knowledge and belief. A control room agent changes its epistemic state according to a proposed epistemic change algorithm, which allows the agent to select between two well-established forms of belief change operations, namely, belief revision and belief update. The combination of (possibly conflicting) information from different sources has re- ceived a lot of attention in recent years. Using templated orderings for the semantic representation of information, a new family of purely qualitative merging operations is developed.School of ComputingPh. D. (Computer Science