Operations Research Letters· 2026Q2
A geometric analysis of gains from trade
- 12citations
- Q2SCImago
- 2026year
Short summary
A geometric proof shows the random proposer mechanism is a 4-approximation to first-best gains from trade in bilateral exchange.
AI-generated from the title and abstract; the full text is not read.
Key points
- The random proposer mechanism is proven to be a 4-approximation to first-best gains from trade.
- A geometric analysis is used to establish this approximation guarantee.
- The geometric approach is refined to recover a known 3.147-approximation.
AI-generated from the title and abstract; the full text is not read.
Abstract
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 3.147-approximation guarantee previously established by Fei.
The authors' abstract, as published at the source. Operations Research Letters, 2026 · DOI ↗
Continue with a free account
Ask the paper: 3 free questions a day about this paper; save it, get its citation, new summaries every day for your field. Takeaways are Premium.
Continue free on the webSign in with Google or Apple; no card needed. You come back to this paper.
On your phone:
Field: Economics and Econometrics
Economics and EconometricsEconomics, Econometrics and Finance