Implementing Coarse Priority Schemes
This thesis shows that coarse priority schemes for rationing random supply can be implemented without prior knowledge of the distribution of valuations using the VCG mechanism. Coarse priority rationing schemes are those with fewer priority classes than individuals. Coarse priority schemes are of interest because full priority schemes may not be feasible in practice and because coarse priority schemes achieve large parts of the gains from full priority schemes. Implementation of the coarser priority schemes without knowledge of the distribution of valuations is useful when offering priority for the first time, since this information may not be available. I show that with unit demand, risk neutrality and a known supply distribution, the optimal priority scheme for a given number of classes can be implemented. I provide a program to simultaneously solve for the optimal cut-offs and VCG prices given any discrete valuations and any supply distribution.
|Date of creation:||2011|
|Contact details of provider:|| Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200|
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
References listed on IDEAS
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.:
- R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 57-65, 09.
- Chao, Hung-po & Oren, Shmuel S. & Smith, Stephen A. & Wilson, Robert B., 1986. "Multilevel demand subscription pricing for electric power," Energy Economics, Elsevier, vol. 8(4), pages 199-217, October.
When requesting a correction, please mention this item's handle: RePEc:ags:aare11:100533. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.