Robust Market Interventions (opens in new tab)

arXiv:2411.03026v3 Announce Type: replace-cross Abstract: When can interventions in markets be designed to increase surplus robustly -- i.e., with high probability -- accounting for uncertainty due to imprecise information about economic primitives? In a setting with many strategic firms, each possessing some market power, we present conditions for such interventions to exist. The key condition, recoverable structure, requires large-scale complementarities among families of products. The anal...