# Algorithmic mechanism design

Designing markets and games to achieve what we collectively want from what we individually want

September 22, 2014 — February 27, 2024

Hard theory of incentive mechanisms, where we can plug numbers into sufficiently abstract models and maybe extract computational complexity results, and get economic optimality as a side effect. Or the other way around.

Every blockchain-style cryptowhatsit is a mechanism design problem. Better governance is a mechanism design problem.

## 1 Fair division

Especially cake-cutting.

~~spliddit~~, a website to use optimal cake cutting algorithms to allocate credit/rent/whatever (Goldman and Procaccia 2015).Oops their site went down (N. Shah 2017). Code here: nisarg89/spliddit

Alternative: the New York Times rent calculator, as mentioned in Albert Sun’s article Sun (2014) about Su’s research into Sperner’s lemma (Su 1999).

Erica Klarreich’s exposé: The Mathematics of Cake Cutting

## 2 Tutorials

Aaron Roth’s Algorithmic Game theory course

In this course, we will take an algorithmic perspective on problems in game theory. We will consider questions such as: how should an auction for scarce goods be structured if the seller wishes to maximize his revenue? How badly will traffic be snarled if drivers each selfishly try to minimize their commute time, compared to if a benevolent dictator directed traffic? How can couples be paired so that no two couples wish to swap partners in hindsight? How can you be as successful at betting on horse races as the best horse racing expert, without knowing anything about horse racing? How can we set prices so that all goods get sold, and everyone gets their favorite good?

## 3 Incoming

Mechanism Design on the AI Alignment Forum

**Related Pages:**Game Theory, Incentives, Principal-Agent Problems, Cryptocurrencies and blockchain, Public discourse**Related Sequences:**Mechanism Design

## 4 References

*Complexity*.

*Academy of Management Proceedings*.

*Proceedings of the AAAI Conference on Artificial Intelligence*.

*Artificial Intelligence*.

*Proceedings of the AAAI Conference on Artificial Intelligence*.

*Games and Economic Behavior*.

*Games and Economic Behavior*.

*The Journal of Socio-Economics*.

*An Introduction to the Theory of Mechanism Design*.

*Journal of Artificial Intelligence Research*.

*Management Science*.

*arXiv:1305.4002 [Cs]*.

*Physica A: Statistical and Theoretical Physics*.

*Internet and Network Economics*.

*arXiv:1211.1703 [Cs]*.

*Journal of Korean Medical Science*.

*The Journal of Political Economy*.

*The Quarterly Journal of Economics*.

*ACM SIGecom Exchanges*.

*Economics and Computation: An Introduction to Algorithmic Game Theory, Computational Social Choice, and Fair Division*. Springer Texts in Business and Economics.

*Eastern Economic Journal*.

*Astronomy & Geophysics*.

*Annual Review of Economics*.

*Algorithmic Game Theory*.

*arXiv:2106.03007 [Cs, Econ, Stat]*.

*Annual Review of Economics*.

*The Alternating Double Auction Market: A Game Theoretic and Experimental Investigation (Lecture Notes in Economics and Mathematical Systems)*.

*XRDS: Crossroads, The ACM Magazine for Students*.

*Communications of the ACM*.

*Journal of Electronic Publishing*.

*The American Mathematical Monthly*.

*The New York Times*.

*arXiv:1411.2139 [Cs]*.

*Mathematical Programming*.