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Content archived on 2024-05-21

Mechanism design for applied environments

Objective

The research objectives of this project are to study the design of mechanisms, focusing on their potential applicability for real economy interactions. Mechanism design is one of the major branches of Game Theory and an important amount of research has been undertaken. However, the main part of this research has approached the problems from a purely theoretical point of view. As a result, the mechanisms proposed are usually technically complex. Sometimes the rules include technical tools as "penalty functions", or the players have to deal with large multidimensional message spaces. The mechanisms, therefore, lose practical applicability and are usually left as purely theoretical contributions without impact on the real economy. My contribution with this project is to try to achieve a correct balance in the need to incorporate to the design of mechanisms, both a rigorous game-theoretical analysis and a simplification of the rules to make them implementable in practical interactions. The results obtained have both positive and normative implications. These mechanisms can be used to study the alternative ways in which societies have designed methods to face and solve conflicts. The lessons we may learn from this "social wisdom" can be very useful to improve future policy decisions. The other potential application of this line of research is more normal live. The mechanisms proposed can be used for the design of interventions of a public authority in a certain market. I will receive training mainly through the development of scientific articles. The process of research leading to the design of a mechanism depends on the specific economic interaction under study. However, the game theoretical modelisation of the relation and the use of non-cooperative solution concepts provide a common framework to all the research. Among the possible applications of the analysis is the design of negotiation processes. In this area I will benefit from the fact that researchers from the CORE have experience working in the design of protocols for environmental negotiations. Another potential area of application is the design of strategies for information acquisition by a Public Authority. The project emphasizes on the practical applications of mechanism design. In this respect, The Center for Operations Research and Econometrics (CORE) is particularly interesting, since it will allow me to contact with research intended to have an impact on policy decisions.

Fields of science (EuroSciVoc)

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Topic(s)

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

RGI - Research grants (individual fellowships)

Coordinator

UNIVERSITE CATHOLIQUE DE LOUVAIN
EU contribution
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Address
34,Voie du Roman Pays 34
1348 LOUVAIN-LA-NEUVE
Belgium

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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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