Optimal Search, Learning and Implementation
We characterize the incentive compatible, constrained efficient policy ("second-best") in a dynamic matching environment, where impatient, privately informed agents arrive over time, and where the designer gradually learns about the distribution of agents' values. We also derive conditions on the learning process ensuring that the complete-information, dynamically efficient allocation of resources ("first-best") is incentive compatible. Our analysis reveals and exploits close, formal relations between the problem of ensuring implementable allocation rules in our dynamic allocation problems with incomplete information and learning, and between the classical problem, posed by Rothschild , of finding optimal stopping policies for search that are characterized by a reservation price property .
|Date of creation:||Apr 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Feldman Building - Givat Ram - 91904 Jerusalem|
Web page: http://www.ratio.huji.ac.il/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S. Bikhchandani & S. Sharma, 1990.
"Optimal Search with Learning,"
UCLA Economics Working Papers
580, UCLA Department of Economics.
- Philippe Jehiel & Benny Moldovanu, 1998.
"Efficient Design with Interdependent Valuations,"
1244, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Jehiel, Phillipe & Moldovanu, Benny, 1998. "Efficient Design with Interdependent Valuations," Sonderforschungsbereich 504 Publications 98-22, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Jehiel, Phillipe & Moldovanu, Benny, 1999. "Efficient Design with Interdependent Valuations," Sonderforschungsbereich 504 Publications 99-74, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Jéhiel, Philippe & Moldovanu, Benny, 1999. "Efficient design with interdependent valuations," Papers 99-74, Sonderforschungsbreich 504.
- Juuso Valimaki & Dirk Bergemann, 2008.
"Dynamic Marginal Contribution Mechanism,"
2008 Meeting Papers
317, Society for Economic Dynamics.
- Dirk Bergemann & Juuso Välimäki, 2007. "Dynamic Marginal Contribution Mechanism," Levine's Bibliography 843644000000000300, UCLA Department of Economics.
- Dirk Bergemann & Juuso Valimaki, 2007. "Dynamic Marginal Contribution Mechanism," Cowles Foundation Discussion Papers 1616, Cowles Foundation for Research in Economics, Yale University.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- John Riley & Richard Zeckhauser, 1983. "Optimal Selling Strategies: When to Haggle, When to Hold Firm," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 267-289.
- Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
- Rothschild, Michael, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 689-711, July/Aug..
- Partha Dasgupta & Eric Maskin, 2000. "Efficient Auctions," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 341-388.
- Alex Gershkov & Benny Moldovanu, 2009. "Learning about the Future and Dynamic Efficiency," American Economic Review, American Economic Association, vol. 99(4), pages 1576-87, September.
- Rosenfield, Donald B. & Shapiro, Roy D., 1981. "Optimal adaptive price search," Journal of Economic Theory, Elsevier, vol. 25(1), pages 1-20, August.
- Kohn, Meir G. & Shavell, Steven, 1974. "The theory of search," Journal of Economic Theory, Elsevier, vol. 9(2), pages 93-123, October.
- Morgan, Peter B, 1985. "Distributions of the Duration and Value of Job Search with Learning," Econometrica, Econometric Society, vol. 53(5), pages 1199-1232, September.
- S. Christian Albright, 1977. "A Bayesian Approach to a Generalized House Selling Problem," Management Science, INFORMS, vol. 24(4), pages 432-440, December.
- Ilya Segal, 2003. "Optimal Pricing Mechanisms with Unknown Demand," American Economic Review, American Economic Association, vol. 93(3), pages 509-529, June.
- Thomas Kittsteiner & Benny Moldovanu, 2005.
"Priority Auctions and Queue Disciplines That Depend on Processing Time,"
INFORMS, vol. 51(2), pages 236-248, February.
- Kittsteiner, Thomas & Moldovanu, Benny, 2004. "Priority Auctions and Queue Disciplines that Depend on Processing Time," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 5, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Michael Rothschild, 1974. "Searching for the Lowest Price When the Distribution of Prices Is Unknown: A Summary," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 1, pages 293-294 National Bureau of Economic Research, Inc.
- Ruqu Wang & Yongmin Chen, 1999. "Learning buyers' valuation distribution in posted-price selling," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(2), pages 417-428.
- Cyrus Derman & Gerald J. Lieberman & Sheldon M. Ross, 1972. "A Sequential Stochastic Assignment Problem," Management Science, INFORMS, vol. 18(7), pages 349-355, March.
When requesting a correction, please mention this item's handle: RePEc:huj:dispap:dp543. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tomer Siedner)
If references are entirely missing, you can add them using this form.