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Optimal Allocation of Limited Funds in Quadratic Funding

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  • Ricardo A. Pasquini

Abstract

We examine the allocation of a limited pool of matching funds to public good projects using Quadratic Funding. In particular, we consider a variation of the Capital Constrained Quadratic Funding (CQF) mechanism proposed by Buterin, Hitzig and Weyl (2019) where only funds in the matching pool are distributed among projects. We show that this mechanism achieves a socially optimal allocation of limited funds.

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  • Ricardo A. Pasquini, 2022. "Optimal Allocation of Limited Funds in Quadratic Funding," Papers 2207.14775, arXiv.org, revised Aug 2022.
    • Handle: RePEc:arx:papers:2207.14775
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    File URL: http://arxiv.org/pdf/2207.14775
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    References listed on IDEAS

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    1. Vitalik Buterin & Zoë Hitzig & E. Glen Weyl, 2019. "A Flexible Design for Funding Public Goods," Management Science, INFORMS, vol. 65(11), pages 5171-5187, November.
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