A Theory of Auditability for Allocation Mechanisms

Aram Grigoryan and Markus M\"oller

Papers from arXiv.org

Abstract: In centralized mechanisms and platforms, participants do not fully observe each others' type reports. Hence, if there is a deviation from the promised mechanism, participants may be unable to detect it. We formalize a notion of auditabilty that captures how easy or hard it is to detect deviations from a mechanism. We find a stark contrast between the auditabilities of prominent mechanisms. We also provide tight characterizations of maximally auditable classes of allocation mechanisms.

Date: 2023-05, Revised 2024-05
New Economics Papers: this item is included in nep-des and nep-mic
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