Yeh Pioneers Application of Information Theory to Mechanism Design in Microeconomics
ECE Professor Edmund Yeh and Jinkun Zhang, PhD’22, in collaboration with Dirk Bergemann, Douglass and Marion Campbell Professor of Economics at Yale University, has published the paper titled “Nonlinear Pricing with Finite Information” in the November 2021 issue of Games and Economic Behavior, a leading journal on game theory and economics. The paper is one of the first to apply vector quantization and other ideas from information theory to problems of mechanism design with limited information in microeconomics. The theory of mechanism design addresses a wide set of questions, ranging from the design of markets and exchanges to the design of constitutions and political institutions.