Optimal assignment of durable objects to successive agents
This paper analyzes the assignment of durable objects to successive generations of agents who live for two periods. The optimal assignment rule is stationary, favors old agents and is determined by a selectivity function, which satisfies an iterative functional differential equation. More patient social planners are more selective, as are social planners facing distributions of types with higher probabilities for higher types. The paper also characterizes optimal assignment rules when monetary transfers are allowed and agents face a recovery cost, when multiple agents enter society, and when agents can invest to improve their types. Copyright Springer-Verlag 2012
Volume (Year): 51 (2012)
Issue (Month): 1 (September)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/199/PS2|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cyrus Derman & Gerald J. Lieberman & Sheldon M. Ross, 1972. "A Sequential Stochastic Assignment Problem," Management Science, INFORMS, vol. 18(7), pages 349-355, March.
- Gershkov, Alex & Moldovanu, Benny, 2010. "Efficient sequential assignment with incomplete information," Games and Economic Behavior, Elsevier, vol. 68(1), pages 144-154, January.
- S. Christian Albright, 1974. "Optimal Sequential Assignments with Random Arrival Times," Management Science, INFORMS, vol. 21(1), pages 60-67, September.
- Francis Bloch & David Cantala, 2013.
"Markovian assignment rules,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 1-25, January.
- Francis Bloch & David Cantala, 2008. "Markovian assignment rules," Working Papers hal-00356304, HAL.
- Francis Bloch & David Cantala, 2010. "Markovian assignment rules," Serie documentos de trabajo del Centro de Estudios Económicos 2010-18, El Colegio de México, Centro de Estudios Económicos.
- Francis Bloch & David Cantala, 2013. "Markovian assignment rules," PSE - Labex "OSE-Ouvrir la Science Economique" hal-01013737, HAL.
- Abdulkadiroglu, Atila & Sonmez, Tayfun, 1999. "House Allocation with Existing Tenants," Journal of Economic Theory, Elsevier, vol. 88(2), pages 233-260, October.
- Waldman, Michael, 1990. "Up-or-Out Contracts: A Signaling Perspective," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 230-250, April.
- Michael Waldman, 1989. "Up-or-Out Contracts: A Signaling Perspective," UCLA Economics Working Papers 556, UCLA Department of Economics.
- Kahn, Charles & Huberman, Gur, 1988. "Two-sided Uncertainty and "Up-or-Out" Contracts," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 423-444, October.
- Carmichael, H Lorne, 1988. "Incentives in Academics: Why Is There Tenure?," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 453-472, June. Full references (including those not matched with items on IDEAS)