 A planner-optimal matching mechanism and its incentive compatibility in a restricted domainGames and Economic Behavior, 2023, vol. 141, issue C, 364-379 Abstract: In many random assignment problems, the central planner pursues their own policy objective, such as matching size and minimum quota fulfillment. Several practically important policy objectives do not align with agents' preferences and are known to be incompatible with strategy-proofness. This paper demonstrates that such policy objectives can be attained using mechanisms that satisfy Bayesian incentive compatibility within a restricted domain of von Neumann Morgenstern utilities. We establish that a mechanism satisfies Bayesian incentive compatibility in an inverse-bounded-indifference domain if and only if the mechanism satisfies the three axioms of swap monotonicity, lower invariance, and interior upper variance. We apply this axiomatic characterization to analyze the incentive property of the constrained random serial dictatorship mechanism (CRSD). CRSD is designed to generate an individually rational assignment that optimizes the central planner's policy objective function. Since CRSD satisfies these axioms, it is Bayesian incentive compatible within an IBI domain. Keywords: Random assignment; Ordinal mechanisms; Strategy-proofness; Maximum matching; Minimum quota (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:141:y:2023:i:c:p:364-379 DOI: 10.1016/j.geb.2023.07.003 Access Statistics for this article Games and Economic Behavior is currently edited by E. Kalai More articles in Games and Economic Behavior from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.