EconPapers    
Economics at your fingertips  
 

Balanced ranking mechanisms

Yan Long, Debasis Mishra and Tridib Sharma

Games and Economic Behavior, 2017, vol. 105, issue C, 9-39

Abstract: In the private values single object auction model, we construct a satisfactory mechanism – a symmetric, dominant strategy incentive compatible, and budget-balanced mechanism. The mechanism converges to efficiency at an exponential rate. It allocates the object to the highest valued agent with more than 99% probability provided there are at least 14 agents. It is also ex-post individually rational. We show that our mechanism is optimal in a restricted class of satisfactory ranking mechanisms. Since achieving efficiency through a dominant strategy incentive compatible and budget-balanced mechanism is impossible in this model, our results illustrate the limits of this impossibility.

Keywords: Budget-balanced mechanisms; Green–Laffont mechanism; Pareto optimal mechanism (search for similar items in EconPapers)
JEL-codes: D82 D71 D02 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825617301173
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:105:y:2017:i:c:p:9-39

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2018-01-27
Handle: RePEc:eee:gamebe:v:105:y:2017:i:c:p:9-39