ambiguity aversion

Distributionally Robust Optimal Allocation with Costly Verification

  • Halil İbrahim Bayrak
  • Çağıl Koçyiğit
  • Daniel Kuhn
  • Mustafa C. Pinar
    • Categories Robust Optimization Tags , ,

    We consider the mechanism design problem of a principal allocating a single good to one of several agents without monetary transfers. Each agent desires the good and uses it to create value for the principal. We designate this value as the agent’s private type. Even though the principal does not know the agents’ types, she … Read more

    Distributionally Robust Mechanism Design

  • Garud Iyengar
  • Çağıl Koçyiğit
  • Daniel Kuhn
  • Wolfram Wiesemann
    • Categories Robust Optimization Tags , , , ,

    We study a mechanism design problem where an indivisible good is auctioned to multiple bidders, for each of whom it has a private value that is unknown to the seller and the other bidders. The agents perceive the ensemble of all bidder values as a random vector governed by an ambiguous probability distribution, which belongs … Read more