Mechanism Design for Computationally Limited Agents
In this talk I will present work aimed at bridging this gap. By explicitly incorporating the deliberation (computational and information gathering) actions of agents into their strategies, we are able to provide a theory of interaction for self-interested computationally-bounded agents. I will describe a new game-theoretic solution concept, the deliberation equilibrium and use this concept to analyze several classic and commonly used auctions. In particular, I will illustrate the complex strategic behavior which arises when agents have deliberation limitations, which has been overlooked by traditional analysis. I will conclude by discussing mechanism design principles for multiagent systems and electronic markets with resource-bounded agents.