A Typed Language for Truthful One-Dimensional Mechanism Design

We first introduce a very simple typed language for expressing allocation algorithms that allows automatic verification that an algorithm is monotonic and therefore truthful. The analysis of truthfulness is accomplished using a syntax-directed transformation which constructs a proof of monotonicity based on an exhaustive critical-value analysis of the algorithm. We then define a more high-level, general-purpose programming language with typical constructs, such as those for defining recursive functions, along with primitives that match allocation algorithm combinators found in the work of Mu’alem and Nisan [10]. We demonstrate how this language can be used to combine both primitive and user-defined combinators, allowing it to capture a collection of basic truthful allocation algorithms. In addition to demonstrating the value of programming language design techniques in application to a specific domain, this work suggests a blueprint for interactive tools that can be used to teach the simple principles of truthful mechanism design.