Approximating Large Contests and other Auction-Like Games: a Mechanism Design Approach

This award funds research in game theory. The PIs study strategic situations using mathematical models, with an emphasis on certain types of auctions. They establish that the equilibria of such auction-like games converge, as the number of players grows, to the outcomes of some inventive-compatible and individually rational single-agent mechanisms. This enables the use of tools developed for mechanism design to approximate and study the equilibria of auction-like games with a large number of players. The research team uses this idea to study contests, uniform price auctions, and double auctions.

There are many kinds of contests with large numbers of participants. University admissions, promotions in large corporations, and prizes for outstanding accomplishments are all examples. This project will give us new tools to determine how differences in contest rules affect the outcomes of the contest.