Robust Robustness
Fuente:
arXiv
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| Autori principali: | , |
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| Natura: | Preprint |
| Pubblicazione: |
2024
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| Soggetti: | |
| Accesso online: | |
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| _version_ | 1866913087669403648 |
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| author | Ball, Ian Kattwinkel, Deniz |
| author_facet | Ball, Ian Kattwinkel, Deniz |
| contents | We propose a refinement of the maxmin approach to robustness. A mechanism's payoff guarantee over an ambiguity set is \emph{robust} if the guarantee is approximately satisfied at priors near the ambiguity set (in the weak topology). We show that many maxmin-optimal mechanisms in the literature give payoff guarantees that are not robust. Such mechanisms are often tailored to degenerate worst-case priors, making them simple but fragile. Conversely, some commonly used ambiguity sets satisfy a structural property which ensures that every associated payoff guarantee is robust. We show how any ambiguity set can be slightly enriched to satisfy this property. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2408_16898 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Robust Robustness Ball, Ian Kattwinkel, Deniz Theoretical Economics We propose a refinement of the maxmin approach to robustness. A mechanism's payoff guarantee over an ambiguity set is \emph{robust} if the guarantee is approximately satisfied at priors near the ambiguity set (in the weak topology). We show that many maxmin-optimal mechanisms in the literature give payoff guarantees that are not robust. Such mechanisms are often tailored to degenerate worst-case priors, making them simple but fragile. Conversely, some commonly used ambiguity sets satisfy a structural property which ensures that every associated payoff guarantee is robust. We show how any ambiguity set can be slightly enriched to satisfy this property. |
| title | Robust Robustness |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2408.16898 |