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Assignment Messages and Exchanges

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  • Paul Milgrom

Abstract

"Assignment messages" are maximally general messages to describe substitutable preferences by means of a linear program. With "integer assignment messages," there exist integer-valued Walrasian allocations, extending a result of Lloyd S. Shapley and Martin Shubik (1971). Any pure Nash equilibrium profile of the Walrasian mechanism with participants limited to assignment messages is also a Nash equilibrium of the unrestricted Walrasian mechanism. Assignment exchanges are generalizations of single-product double auctions and are related to ascending multi-product clock auctions and the Vickrey mechanism. Assignment messages also have additional applications in mechanism design. (JEL D44, D82)

Suggested Citation

  • Paul Milgrom, 2009. "Assignment Messages and Exchanges," American Economic Journal: Microeconomics, American Economic Association, vol. 1(2), pages 95-113, August.
    • Handle: RePEc:aea:aejmic:v:1:y:2009:i:2:p:95-113
    Note: DOI: 10.1257/mic.1.2.95
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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