Nonmyopia and incentives in the piecewise linearized MDP procedures with variable step-sizes

Sato, Kimitoshi

doi:10.1186/2193-2409-1-5

Cited by 2 publications

(4 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Given these circumstances, the study posits that producers follow a quality adjustment process based on trial-and-error, that is, they adjust the quality in accordance with demand in order to predominate the product market with improved quality. The idea is parallel to previous studies on dynamic search processes, such as Callander (2011) under conditions of uncertainty and Sato (2012) for public goods. Nevertheless, it was Jwa (1985) who studied quality development in vertically differentiated products, assuming the price of quality being available.…”

supporting

confidence: 48%

Quality Adjustment in Non-spanning Markets with Variety Aversion

Nishimura

2013

Economic Structures

View full text Add to dashboard Cite

This paper examines the dynamic process of quality adjustment in cases where the economy lacks a sufficient number of markets for coordinating the level of attributes that configure the qualities of products. It shows that an adjustment process through the development and selection of commodities with different qualities may succeed in achieving efficiency or at least, meet the necessary conditions for efficiency. This is true if the user can identify with the altered product and is unaffected by variety in the commodity. It also holds true when the consumer assesses product variety in a smooth (differentiable) function, but not necessarily so if the assessment is non-smooth regarding the homogeneous state. An unidentifiable case can also be subject to inefficiency as the effort of a small quality adjusting agent becomes attenuated.

show abstract

supporting

confidence: 48%

Quality Adjustment in Non-spanning Markets with Variety Aversion

Nishimura

2013

Economic Structures

View full text Add to dashboard Cite

show abstract

“…Their attempt is to bridge the gap between the local instantaneous game and the global game, as was pointed out by Hammond (1979). Sato (2012) aimed, however, to bridge the gap between the local game and intertemporal game, by constructing a compromise of continuous and discrete procedures: i.e., the piecewise linearized procedure that Sato presented.…”

Section: Final Remarksmentioning

confidence: 99%

“…4 Conventional mathematical notation is used throughout in the same manner as in Sato (2012). Hereafter all variables are assumed to be functions of time t; however, the argument t is often omitted.…”

Section: Lemma 1 Under Assumptions 1-3 Necessary and Sufficient Condmentioning

confidence: 99%

See 1 more Smart Citation

The MDP Procedure for public goods and local strategy proofness

Sato

2016

Economic Structures

Self Cite

View full text Add to dashboard Cite

Vallée Poussin (hereafter, MDP) procedure. Since then large literature has accumulated that develops so many kinds of individually rational and incentive compatible planning procedures for optimally providing public goods. AbstractThis paper revisits the family of MDP Procedures and analyzes their properties. It also reviews the procedure developed by Sato (Econ Stud Q 34:97-109, 1983) which achieves aggregate correct revelation in the sense that the sum of the Nash equilibrium strategies always coincides with the aggregate value of the correct marginal rates of substitution. The procedure named the Generalized MDP Procedure can possess other desirable properties shared by continuous-time locally strategy proof planning procedures, i.e., feasibility, monotonicity and Pareto efficiency. Under myopia assumption, each player's dominant strategy in the local incentive game associated at any iteration of the procedure is proved to reveal his/her marginal rate of substitution for a public good. In connection with the Generalized MDP Procedure, this paper analyzes the structure of the locally strategy proof procedures as algorithms and game forms. An alternative characterization theorem of locally strategy proof procedures is given by making use of the new condition, transfer independence. A measure of incentives is proposed to show that the exponent attached to the decision function of public good is characterized. A Piecewise Nonlinearized MDP Procedure is presented, which is coalitionally locally strategy proof. Equivalence between price-guided and quantity-guided procedures is also discussed.

show abstract

Nonmyopia and incentives in the piecewise linearized MDP procedures with variable step-sizes

Cited by 2 publications

References 38 publications

Quality Adjustment in Non-spanning Markets with Variety Aversion

Quality Adjustment in Non-spanning Markets with Variety Aversion

The MDP Procedure for public goods and local strategy proofness

Contact Info

Product

Resources

About