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dc.contributor.author Belloni, A
dc.contributor.author Lopomo, G
dc.contributor.author Wang, S
dc.date.accessioned 2011-06-21T17:31:02Z
dc.date.issued 2010-07-01
dc.identifier.citation Operations Research, 2010, 58 (4 PART 2), pp. 1079 - 1089
dc.identifier.issn 0030-364X
dc.identifier.uri http://hdl.handle.net/10161/4439
dc.description.abstract Multidimensional mechanism design problems have proven difficult to solve by extending techniques from the onedimensional case. This paper considers mechanism design problems with multidimensional types when the seller's cost function is not separable across buyers. By adapting results obtained by Border [Border, K. 1991. Implementation of reduced form auctions: A geometric approach. Econometrica 59 1175-1187], we transform the seller's problem into a representation that only involves "interim" variables and eliminates the dimensionality dependence on the number of buyers. We show that the associated infinite-dimensional optimization problem posed by the theoretical model can be approximated arbitrarily well by a sequence of finite-dimensional linear programming problems. We provide an efficient-i.e., terminating in polynomial time in the problem size-method to compute the separation oracle associated with the Border constraints and incentive compatibility constraints. This implies that our finite-dimensional approximation is solvable in polynomial time. Finally, we illustrate how the numerical solutions of the finite-dimensional approximations can provide insights into the nature of optimal solutions to the infinite-dimensional problem in particular cases. ©2010 INFORMS.
dc.format.extent 1079 - 1089
dc.language.iso en_US en_US
dc.relation.ispartof Operations Research
dc.relation.isversionof 10.1287/opre.1100.0824
dc.title Multidimensional mechanism design: Finite-dimensional approximations and efficient computation
dc.title.alternative en_US
dc.type Journal Article
dc.description.version Version of Record en_US
duke.date.pubdate 2010-8-jul en_US
duke.description.endpage 1089 en_US
duke.description.issue 4 en_US
duke.description.startpage 1079 en_US
duke.description.volume 58 en_US
dc.relation.journal Operations research en_US
pubs.issue 4 PART 2
pubs.organisational-group /Duke
pubs.organisational-group /Duke/Fuqua School of Business
pubs.organisational-group /Duke/Trinity College of Arts & Sciences
pubs.organisational-group /Duke/Trinity College of Arts & Sciences/Economics
pubs.organisational-group /Duke/Trinity College of Arts & Sciences/Statistical Science
pubs.publication-status Published
pubs.volume 58
dc.identifier.eissn 1526-5463

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