This approach was used in the paper "Efficient Mechanisms for Bilateral Trading," which proposes that there is no efficient way for two parties with unknown, varying values on a good to come to a trading price.
In a 1999 paper, Noam Nisan and Amir Ronen computerized this economic approach in its "algorithmic" variety. This approach was used in the paper "Efficient Mechanisms for Bilateral Trading," which proposes that there is no efficient way for two parties with unknown, varying values on a good to come to a trading price. That result in this field is known as the Myerson-Sattherthwaite theorem. This approach is an extension of game theory to situations where fewer variables are known, and is particularly useful for auction-like situations with full information held only by a non-buyer, non-seller third party. For 10 points, name this microeconomic approach which won the 2007 Noel Prize for Roger Myerson, Eric Maskin, and Leonid Hurwicz.
In a 1999 paper, Noam Nisan and Amir Ronen computerized this economic approach in its "algorithmic" variety.
mechanism design theory