# ALEXEY KUSHNIR

Assistant Professor of Economics

Tepper School of Business

Carnegie Mellon University

Posner Hall, 237

412 268 60 79, akushnir@andrew.cmu.edu

My primary research interest lies in the domain of Mechanism
Design, Market Design, and Optimal Income Taxation. My contribution to
mechanism design includes the analysis of fundamental questions of
implementation. In particular,
**[2]** shows that in standard social choice environments with private types Bayesian incentive compatibility
(BIC) is equivalent to dominant strategy incentive compatibility
(DIC). Subsequent papers (**[6],
[7]**) extend this result to environments with correlated types
and non-linear utilities. In conjunction with the BIC-DIC
equivalence, **[8]**
analyzes also a purely mathematical question when a projection of
two convex closed sets coincides with the intersection of their
images.

Another paper **[3]** develops a novel geometric approach to mechanism design that exploits classical results from convex analysis and majorization theory to provide a tractable analysis of generally complex resource and incentive constraints.
A subsequent paper
**[4]** extends the geometric approach
to environments with interdependent values.

My work on market design focuses on the analysis of a signaling mechanism in two-sided matching markets. This endeavor shows that the introduction of private signals facilitates match formation for a wide range of environments (**[1]**). Nevertheless, there are instances when signaling precludes match formation (**[5]**).

My paper on optimal income taxation (**[10]**)
introduces endogeneous prices in a standard Mirleesian model. The
distribution of income effects then social welfare not only
directly, but also through its influence on the level of product
prices in the economy. For competitive markets, the paper shows that
the price effect on optimal marginal income tax is positive for
normal goods, negative for inferior goods, increasing for luxury
goods, and decreasing for necessity goods. For oligopolistic
markets, the paper establishes that the optimal marginal income tax
should be smaller for less competitive markets.

I am also involved in projects related to the theory of
networks (**[9]**) .

- Coles, P., Kushnir A., & Niederle, M. (2013). Preference Signaling in Matching Markets. American Economic Journal: Microeconomics, 5(2), 99-134.
- Gershkov, A., Goeree, J. K., Kushnir, A., Moldovanu, B., & Shi, X. (2013). On the equivalence of Bayesian and dominant strategy implementation. Econometrica, 81(1), 197-220.
- Goeree, J. K. & Kushnir, A. (2017). A geometric approach to mechanism design. Working Paper.
- Goeree, J. K. & Kushnir, A. (2016). Reduced form implementation with value interdependencies. Games and Economic Behavior, 99, 250-256.
- Kushnir, A. (2013). Harmful signaling in matching markets. Games and Economic Behavior, 80, 209-218.
- Kushnir, A. (2015). On sufficiency of dominant strategy implementation in environments with correlated types. Economics Letters, 133, 4-6.
- Kushnir, A. & Liu, S. (2018). On the equivalence of Bayesian and dominant strategy implementation for environments with non-linear utilities. Economic Theory, Accepted.
- Kushnir, A. & Liu, S. (2017). On linear transformations of intersections. Working paper.
- Kushnir, A. & Nichifor, A. (2015). Targeted vs. collective posting in social platforms. Working Paper.
- Kushnir, A. & Zurbrickas, R. (2018). Optimal Income Taxation and Endogeneous Prices. Working Paper