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Eliciting the socially optimal allocation from responsible agents

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  • Doğan, Battal

Abstract

We consider designing a mechanism to allocate objects among agents without monetary transfers. There is a socially optimal allocation, which is commonly known by the agents but not observable by the designer. The designer possibly has information about the existence of responsible agents. A responsible agent, when indifferent between his objects at two different allocations, prefers the first allocation to the second if the first allocation is closer to the optimal allocation than the second, in the sense that all the agents who are allocated their optimal objects in the second allocation are allocated their optimal objects also in the first allocation, and there is at least one more agent in the first allocation receiving his optimal object. We show that, if the designer knows that there are at least three responsible agents, even if the identities of the responsible agents are not known, the optimal allocation can be elicited.

Suggested Citation

  • Doğan, Battal, 2017. "Eliciting the socially optimal allocation from responsible agents," Journal of Mathematical Economics, Elsevier, vol. 73(C), pages 103-110.
    • Handle: RePEc:eee:mateco:v:73:y:2017:i:c:p:103-110
    DOI: 10.1016/j.jmateco.2017.09.001
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    References listed on IDEAS

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    Cited by:

    1. Hitoshi Matsushima, 2020. "Implementation, Honesty, and Common Knowledge," CARF F-Series CARF-F-500, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    2. Matsushima, Hitoshi, 2022. "Epistemological implementation of social choice functions," Games and Economic Behavior, Elsevier, vol. 136(C), pages 389-402.

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