Rica Gonen : Abstract

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  Negotiation-Range Mechanisms: Coalition-Resistant Markets
 
  Negotiation-range mechanisms offer a novel approach to achieving efficient markets based on finding the maximum weighted matching in a weighted bipartite graph connecting buyers and sellers. Unlike typical markets, negotiation-range mechanisms establish negotiation terms between paired bidders rather than set a final price for each transaction. This subtle difference allows single-unit heterogenous negotiation-range markets to achieve desirable properties (under sufficient competition condition) that cannot coexist in typical markets. This paper extends the useful properties of negotiation-range mechanisms to include coalition-resistance, making them the first markets known to offer protection from coalitions.