IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Bid and Guess: A Nested Mechanism for King Solomon's Dilemma

Listed author(s):
  • Qin, Cheng-Zhong
Registered author(s):

    In this paper we propose a mechanism to resolve King Solomon’s dilemma about allocating an indivisible good at no cost to the participating agents. A distinctive feature of our mechanism is the design of a two-part contest that makes the agents guess each other’s bids in a second-price auction. The accuracy of an agent’s guess of the other agent’s bid endogenously determines how much she pays for participating in the contest. The truthfully bidding Bayesian-Nash equilibrium of the contesting game results in a reduced game, which has a unique and strict Bayesian-Nash equilibrium that implements the efficient outcome.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.escholarship.org/uc/item/78s8m9rn.pdf;origin=repeccitec
    Download Restriction: no

    Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt78s8m9rn.

    as
    in new window

    Length:
    Date of creation: 28 Mar 2006
    Handle: RePEc:cdl:ucsbec:qt78s8m9rn
    Contact details of provider: Postal:
    2127 North Hall, Santa Barbara, CA 93106-9210

    Phone: (805) 893-3670
    Fax: (805) 893-8830
    Web page: http://www.escholarship.org/repec/ucsbecon_dwp/

    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.:

    as
    in new window


    1. Olszewski, Wojciech, 2003. "A simple and general solution to King Solomon's problem," Games and Economic Behavior, Elsevier, vol. 42(2), pages 315-318, February.
    2. Perry, Motty & Reny, Philip J., 1999. "A General Solution to King Solomon's Dilemma," Games and Economic Behavior, Elsevier, vol. 26(2), pages 279-285, January.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:cdl:ucsbec:qt78s8m9rn. 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: (Lisa Schiff)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.