Mechanism Design for Single Leader Stackelberg Problems and Application to Procurement Auction Design

In this paper, we focus on mechanism design for single leader Stackelberg problems, which are a special case of hierarchical decision making problems in which a distinguished agent, known as the leader, makes the first move and this action is followed by the actions of the remaining agents, which are known as the followers. These problems are also known as single leader rest follower (SLRF) problems. There are many examples of such problems in the areas of electronic commerce, supply chain management, manufacturing systems, distributed computing, transportation networks, and multiagent systems. The game induced among the agents for these problems is a Bayesian Stackelberg game, which is more general than a Bayesian game. For this reason, classical mechanism design, which is based on Bayesian games, cannot be applied as is for solving SLRF mechanism design problems. In this paper, we extend classical mechanism design theory to the specific setting of SLRF problems. As a significant appl...

• Type: Journal
• Year: 2008
• Where: TASE
• Authors: Dinesh Garg, Y. Narahari
• Keywords: Mechanism Design, Problems, SLRF Mechanism Design, Software Engineering, TASE 2008