Optimal Allocation with Ex Post Verification and Limited Penalties

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 9
Pages: 2666-94

Authors (2)

Tymofiy Mylovanov (not in RePEc) Andriy Zapechelnyuk (University of Edinburgh)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

Several agents with privately known social values compete for a prize. The prize is allocated based on the claims of the agents, and the winner is subject to a limited penalty if he makes a false claim. If the number of agents is large, the optimal mechanism places all agents above a threshold onto a shortlist along with a fraction of agents below the threshold, and then allocates the prize to a random agent on the shortlist. When the number of agents is small, the optimal mechanism allocates the prize to the agent who makes the highest claim, but restricts the range of claims above and below.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:9:p:2666-94
Journal Field
General
Author Count
2
Added to Database
2026-01-29