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Mechanism Design by Creditability
Citation key EOSW-MDBC-07b
Author Eidenbenz, Raphael and Oswald, Yvonne Anne and Schmid, Stefan and Wattenhofer, Roger
Year 2007
Month August
Institution Computer Engineering and Networks Laboratory (TIK), ETH Zurich
Abstract This paper attends to the problem of a mechanism designer seeking to influence the outcome of a strategic game based on her creditability. The mechanism designer offers additional payments to the players depending on their mutual choice of strategies in order to steer them to certain decisions. Of course, the mechanism designer aims at spending as little as possible and yet implementing her desired outcome. We present several algorithms for this optimization problem both for singleton target strategy profiles and target strategy profile regions. Furthermore, the paper shows how a bankrupt mechanism designer can decide efficiently whether strategy profiles can be implemented at no cost at all. Finally, risk-averse players and dynamic games are examined.
Bibtex Type of Publication Technical Report
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