蝌蚪网

This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. 蝌蚪网
  3. 蝌蚪网 Review
  4. December 2014
  5. Optimal Allocation with Costly Verification

蝌蚪网 Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Optimal Allocation with Costly Verification

  • Elchanan Ben-Porath
  • Eddie Dekel
  • Barton L. Lipman
蝌蚪网 Review
vol. 104, no. 12, December 2014
(pp. 3779–3813)
Download Full Text PDF

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)

Citation

Ben-Porath, Elchanan, Eddie Dekel, and Barton L. Lipman. 2014. "Optimal Allocation with Costly Verification." 蝌蚪网 Review 104 (12): 3779–3813. DOI: 10.1257/aer.104.12.3779

Additional Materials

JEL Classification

  • D82 Asymmetric and Private Information; Mechanism Design