Auction-Theory

Mechanism Design: Engineering Games with Desired Outcomes In 2012, Alvin Roth and Lloyd Shapley won the Nobel Prize in Economics for mechanism design — the art of reverse-engineering game theory. Instead of analyzing existing games, mechanism design asks: Can we design the rules to get the outcome we want? The result? Kidney exchange networks that save thousands of lives Spectrum auctions that raised $100+ billion for governments School choice systems that match students to schools fairly Voting systems that resist manipulation Mechanism design is game theory’s most powerful application — turning abstract mathematics into real-world systems that align incentives and produce efficient outcomes. ...

Auction Theory: The Mathematics of Bidding Wars In 1994, the U.S. government auctioned radio spectrum licenses using game theory. The result? $7.7 billion in revenue — far more than expected. In 2000, the UK’s 3G telecom auction raised $34 billion using carefully designed rules. In 2016, the FCC’s broadcast incentive auction was called “the most complex auction ever conducted” — a reverse auction followed by a forward auction, designed by game theorists. ...