mechanism design seminar notes | week 3
Recap of week 2, and motivation for this week’s Part I: In an economy of $n$ agents and $m$ indivisible items, if all agents’ value functions are Gross-Substitute, the economy has a Walrasian Equilibrium $(\vec S, \vec p)$. The Walrasian Tatônnement process can find the equilibrium efficiently. The allocation also maximizes social welfare. But one subtle thing to notice about Walrasian Tatônnement is that it converges to an equilibrium. So here’s another way of solving it: ...