The Best of Both Worlds: Asymptotically Efficient Mechanisms with a Worst-Case Guarantee...
summary
Maximizes gains from trade in double auctions and matching markets by combining McAfee trade reduction when the efficient trade size Q ≥ 2 with a restricted random seller/buyer-offering when Q = 1, where offers are limited to VCG-derived price bounds (p2 and s2 analogues). The mechanism is incentive compatible, ex post IR and budget balanced, gives asymptotic efficiency 1 − 1/Q on large markets, and guarantees at least a constant (shown 1/4) of the second‑best expected gains from trade in the worst case.
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