The application opportunities of mechanism design theory has been analyzed in the scope of company management, particularly in the scope of individual-company negotiations process. The negotiation process has been analyzed using the mechanism design methodology. Besides the individual rationality and incentive compatibility constraints two more efficiency indicators such as net utility of agent and company has been defined to evaluate the mechanisms. During the analysis it became evident, that the widespread mechanisms in the market do not meet the defined efficiency indicators and at the same time are not considered incentive compatible. Adjusted Vickrey-Clarke-Groves mechanism has been designed by the authors, which may be applicable in the negotiation process. The designed mechanism corresponds to the defined efficiency indicators, the individual rationality and incentive compatibility constraints and can be fully implemented in the process of individual-company negotiations.
No takes yet. Share an insight, caveat, or question.
Khachatryan et al. (2024) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: