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Friend-Based Ranking

Author

Listed:
  • Francis Bloch
  • Matthew Olckers

Abstract

We analyze the design of a mechanism to extract a ranking of individuals according to a unidimensional characteristic, such as ability or need. Individuals, connected on a social network, only have local information about the ranking. We show that a planner can construct an ex post incentive compatible and efficient mechanism if and only if every pair of friends has a friend in common. We characterize the windmill network as the sparsest social network for which the planner can always construct a complete ranking.

Suggested Citation

  • Francis Bloch & Matthew Olckers, 2022. "Friend-Based Ranking," American Economic Journal: Microeconomics, American Economic Association, vol. 14(2), pages 176-214, May.
    • Handle: RePEc:aea:aejmic:v:14:y:2022:i:2:p:176-214
    DOI: 10.1257/mic.20190333
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    Citations

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    Cited by:

    1. Kinateder, Markus & Merlino, Luca Paolo, 2023. "Free riding in networks," European Economic Review, Elsevier, vol. 152(C).
    2. Axel Niemeyer & Justus Preusser, 2023. "Simple Allocation with Correlated Types," CRC TR 224 Discussion Paper Series crctr224_2023_486, University of Bonn and University of Mannheim, Germany.
    3. Follett, Lendie & Henderson, Heath, 2023. "A hybrid approach to targeting social assistance," Journal of Development Economics, Elsevier, vol. 160(C).
    4. Matthew Olckers & Toby Walsh, 2022. "Manipulation and Peer Mechanisms: A Survey," Papers 2210.01984, arXiv.org, revised Nov 2023.

    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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