A Geometric Analysis of Gains from Trade

Fuente: arXiv
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Main Authors: Hartline, Jason, Wang, Kangning
Format: Preprint
Published: 2025
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author Hartline, Jason
Wang, Kangning
author_facet Hartline, Jason
Wang, Kangning
contents We provide a geometric proof that the random proposer mechanism is a $4$-approximation to the first-best gains from trade in bilateral exchange. We then refine this geometric analysis to recover the state-of-the-art approximation ratio of $3.15$.
format Preprint
id arxiv_https___arxiv_org_abs_2508_06469
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A Geometric Analysis of Gains from Trade
Hartline, Jason
Wang, Kangning
Computer Science and Game Theory
Theoretical Economics
We provide a geometric proof that the random proposer mechanism is a $4$-approximation to the first-best gains from trade in bilateral exchange. We then refine this geometric analysis to recover the state-of-the-art approximation ratio of $3.15$.
title A Geometric Analysis of Gains from Trade
topic Computer Science and Game Theory
Theoretical Economics
url https://arxiv.org/abs/2508.06469