Theoretical analysis explores welfare maximization in bilateral trade settings with interdependent values, highlighting challenges in strategic inference and mechanism design.
Welfare maximization in bilateral trade has been extensively studied in recent years. Previous literature obtained incentive-compatible approximation mechanisms only for the private values case. In this paper, we study welfare maximization in bilateral trade with interdependent values. Designing mechanisms for interdependent settings is much more challenging because the values of the players depend on the private information of the others, requiring complex belief updates and strategic inference.
No takes yet. Share an insight, caveat, or question.
Dobzinski et al. (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: