THE COMPLEXITY OF RESOURCE-ALLOCATION AND PRICE MECHANISMS UNDER BOUNDED RATIONALITY

Authors
FRIEDMAN EJ OREN SS
Citation
Ej. Friedman et Ss. Oren, THE COMPLEXITY OF RESOURCE-ALLOCATION AND PRICE MECHANISMS UNDER BOUNDED RATIONALITY, Economic theory, 6(2), 1995, pp. 225-250
Citations number
39
Categorie Soggetti
Economics
Journal title
Economic theory → ACNP
ISSN journal
09382259
Volume
6
Issue
2
Year of publication
1995
Pages
225 - 250
Database
ISI
SICI code
0938-2259(1995)6:2<225:TCORAP>2.0.ZU;2-E
Abstract
We develop a framework for desgining and evaluating the complexity of mechanisms that allocate resources in a distributed setting to agents or processors with bounded computational ability. We discuss several m echanisms and describe the construction of efficient price based mecha nisms, which exploit the decentrlized aspects of the problem. These pr ice mechanisms are polynomial in the number of resources, precision of the solution, and the logarithm of the number of agents.