Tag Info

Accepted

What is the definition of "First Best", "Second Best", etc. in contract theory?

In contract theory The first-best refers to the best you could do if you knew agents' preferences over labor and income (i.e., if you did not have to impose the incentive compatibility constraint), ...

What is the difference between contract theory and mechanism design?

Contracts are a subset of all mechanisms where agreements are enforcable. An example of a mechanism that is not a contract: A second price auction (or Vickrey auction) is a truth-telling mechanism ...
• 27.7k
Accepted

Available code for computing solutions to matching algorithms?

While answering a comment, I realized I had a post-worth response. R has become the "default language" for a lot of computational research statistics (for a number of reasons; nice NYT ...
• 1,048