Technologies That Replace a “Central Planner”

RM Townsend, NX Zhang - AEA Papers and Proceedings, 2023 - aeaweb.org
AEA Papers and Proceedings, 2023aeaweb.org
Contracting possibilities are endogenous to the technologies on which the negotiation and
the trading environments are built. Here we review how different technologies allow different
implementations of the “central planner” and gradually abstract this centralized role away
into the technological environment. We emphasize that the “central planner” construct
should no longer remain an abstract invocation in the literature and that it already is
concretely deployed to implement optimized solutions to bilateral and multiagent …
Abstract
Contracting possibilities are endogenous to the technologies on which the negotiation and the trading environments are built. Here we review how different technologies allow different implementations of the “central planner” and gradually abstract this centralized role away into the technological environment. We emphasize that the “central planner” construct should no longer remain an abstract invocation in the literature and that it already is concretely deployed to implement optimized solutions to bilateral and multiagent mechanism design problems. We hope to provide methods for economic, business, and policy designers to leverage the right technological tools for the different problems they are facing.
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