Redistributive Allocation Mechanisms

S-Tier
Journal: Journal of Political Economy
Year: 2024
Volume: 132
Issue: 6
Pages: 1831 - 1875

Authors (3)

Mohammad Akbarpour (not in RePEc) Piotr Dworczak (not in RePEc) Scott Duke Kominers (Harvard University)

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

Many scarce public resources are allocated at below-market-clearing prices and sometimes for free. Such “nonmarket” mechanisms sacrifice some surplus, yet they can potentially improve equity. We develop a model of mechanism design with redistributive concerns. Agents are characterized by a privately observed willingness to pay for quality, a publicly observed label, and a social welfare weight. A market designer controls allocation and pricing of a set of objects of heterogeneous quality and maximizes the expectation of a welfare function. The designer does not directly observe individuals’ social welfare weights. We derive structural insights about the form of the optimal mechanism, leading to a framework for determining how and when to use nonmarket mechanisms.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/728111
Journal Field
General
Author Count
3
Added to Database
2026-01-25