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Optimal robust allocation of private goods

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  • Kiho Yoon

    (Department of Economics, Korea University, Seoul, Republic of Korea)

Abstract

We characterize the optimal robust mechanisms for the allocation of private objects, where robust mechanisms are those mechanisms that satisfy dominant strategy incentive compatibility, ex-post individual rationality, and ex-post no budget deficit, and optimal robust mechanisms are the ones that maximize the expected sum of players' payoffs among all robust mechanisms. With a certain assumption on the payoff of the lowest possible type, we provide a complete description of optimal robust mechanisms with any number of players and objects.

Suggested Citation

  • Kiho Yoon, 2018. "Optimal robust allocation of private goods," Discussion Paper Series 1803, Institute of Economic Research, Korea University.
  • Handle: RePEc:iek:wpaper:1803
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    File URL: http://econ.korea.ac.kr/~ri/WorkingPapers/w1803.pdf
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    References listed on IDEAS

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    5. Chakravarty, Surajeet & Kaplan, Todd R., 2013. "Optimal allocation without transfer payments," Games and Economic Behavior, Elsevier, vol. 77(1), pages 1-20.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    robust mechanism design; dominant strategy; budget balance; ex-post individual rationality;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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