How to best sell a good? Should we auction it like in movies? Since the 1960s, economists have addressed this question mathematically and found surprising results. Most notably, in 1981, Nobel prize winner Roger Myerson proved that most auctions you could think of would win you just as much as any basic auction, but that, as well, you could do better using his approach. Since, today, billions of dollars are at play in online auctions, you can imagine how hot a topic it has now become!
This article gives an overview of recent developments in game theory, including evolutionary game theory, extensive form games, mechanism design, bayesian games and mean field games.
In the movie "A Beautiful Mind", the character is John Nash. He is one of the founders of a large and important field of applied mathematics called game theory. Game Theory is the study of human interactions. Its fallouts in economy, politics or biology are countless. This article gives you an introduction to the concepts of this amazing way of thinking.
Whenever you need to make a group of people interact, you are designing a mechanism. If you want to achieve a good interaction, you need to make sure your mechanism is well designed. In this article, I'll show you main features of mechanisms through various examples. I'll also talk about a great mathematical tool for mechanism design: the revelation principle.
Electricity markets are not like any markets. In particular, they cannot be liberalized without regulation. In the article, I list the reasons why this market is specific and I conclude by giving you important features of a good regulation.