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An Introduction to Robust Mechanism Design



Author(s):

Source:
    Journal:Foundations and Trends® in Microeconomics
    ISSN Print:1547-9846,  ISSN Online:1547-9854
    Publisher:Now Publishers
    Volume 8 Number 3,
Pages: 62 (169-230)
DOI: 10.1561/0700000057
Keywords: Mechanism Design;Robust Mechanism Design;Common Knowledge;Universal Type Space;Interim Equilibrium;Ex Post Equilibrium;Dominant Strategies;Rationalizability;Partial Implementation;Full Implementation;Robust Implementation

Abstract:

This essay provides an introduction to our recent work on robust mechanism design. The objective is to provide an overview of the research agenda and its results. We present the main results and illustrate many of them in terms of a common and canonical example, the single unit auction with interdependent values. In addition, we provide an extended discussion about the role of alternative assumptions about type spaces in our work, and the literature at large, in order to explain the common logic of the informational robustness approach that unifies the work.