Optimal Allocation with Costly Verification

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 12
Pages: 3779-3813

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

A principal allocates an object to one of I agents. Each agent values receiving the object and has private information regarding the value to the principal of giving it to him. There are no monetary transfers, but the principal can check an agent's information at a cost. A favored-agent mechanism specifies a value v* and an agent i*. If all agents other than i* report values below v*, then i* receives the good and no one is checked. Otherwise, whoever reports the highest value is checked and receives the good if and only if her report is confirmed. All optimal mechanisms are essentially randomizations over optimal favored-agent mechanisms. (JEL D82)

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:12:p:3779-3813
Journal Field
General
Author Count
3
Added to Database
2026-01-24