EconPapers    
Economics at your fingertips  
 

Optimal search, learning and implementation

Alex Gershkov and Benny Moldovanu ()

Journal of Economic Theory, 2012, vol. 147, issue 3, 881-909

Abstract: We characterize the incentive compatible, constrained efficient policy (“second-best”) in a dynamic matching environment, where impatient, privately informed agents arrive over time, and where the designer gradually learns about the distribution of agentsʼ values. We also derive conditions on the learning process ensuring that the complete-information, dynamically efficient allocation of resources (“first-best”) is incentive compatible. Our analysis reveals and exploits close, formal relations between the problem of ensuring implementable allocation rules in our dynamic allocation problems with incomplete information and learning, and between the classical problem, posed by Rothschild (1974) [20], of finding optimal stopping policies for search that are characterized by a reservation price property.

Keywords: Dynamic mechanism design; Learning; Optimal stopping (search for similar items in EconPapers)
JEL-codes: D61 D78 D83 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053112000130
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Optimal Search, Learning and Implementation (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:147:y:2012:i:3:p:881-909

DOI: 10.1016/j.jet.2012.01.012

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-07-05
Handle: RePEc:eee:jetheo:v:147:y:2012:i:3:p:881-909