Price and Choose

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2025
Volume: 17
Issue: 2
Pages: 1-27

Authors (2)

Federico Echenique (not in RePEc) Matías Núñez

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We describe a sequential mechanism that fully implements the set of efficient outcomes in environments with quasi-linear utilities. The mechanism asks agents to take turns in defining prices for each outcome, with a final player choosing an outcome for all: Price and Choose. The choice triggers a sequence of payments from each agent to the preceding agent. We present several extensions. First, pay-off inequalities may be reduced by endogenizing the order of play. Second, our results extend to a model without quasi-linear utility, to a setting with an outside option, robustness to max-min behavior, and caps on prices.

Technical Details

RePEc Handle
repec:aea:aejmic:v:17:y:2025:i:2:p:1-27
Journal Field
General
Author Count
2
Added to Database
2026-01-26