I apologize for sending this message unedited. It was an accident. Feel free to react as you please.
Gustavo ----- Original Message ----- From: "Gustavo Lacerda" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Monday, July 01, 2002 5:54 PM Subject: how betting games solve problems > Suppose we have 10 people who each wants to rent 1 house for a year. We have > 10 houses in the universe. > Each bidder visits all the houses and assigns preference functions for each > of them. > > UH(bidder,house) is a positive value defined as how much it would please the > bidder to get the house for free. For a given house, this value will be > greatest for the bidders who like the house the most. > > UR(bidder,rent) is a negative value defined as how much it hurts the bidder > to pay the rent without getting the house. For the richer bidders, this will > tend to be a smaller value. > > U(bidder,house) = UH(bidder, house) + UR(bidder, house.rent) > > Let's assume that the landlords only care about how much rent they get: the > bidders are identical in every other way. > A short-sighted utilitarian would want to maximize the sum of everybody's > utility and assign people to houses, and redistributing the wealth. > > A free-marketeer would want a mechanism for individuals to reach > equilibrium: after the end of the assignments, there is no bidder who thinks > that he could have gotten a better deal if they had known others' > preferences beforehand. Of course, a bidder may not reveal his preferences > beforehand because then the landlord of his favorite house could raise the > price to its maximum, reducing the bidder's utility. > > optimize resource allocation > auction game > > The problem: bidders and sellers don't know what the market is going to be > like. > > Similar games are used in graduate school / college admissions. If students > want to hold their space, they have to make a non-refundable deposit. > > Does anybody know this sort of games, and how they solve different problems? > How to formulate a game to solve your particular RA problem. > > > > >
