Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2016

Font Size:  Small  Medium  Large

Balanced Ranking Mechanisms

Debasis Mishra, Tridib Sharma*

Date: 2016-05-06 9:30 am – 10:00 am
Last modified: 2016-04-27

Abstract


In the private values single object auction model, we construct a satisfactory mech- anism - a symmetric, dominant strategy incentive compatible, and budget-balanced mechanism. Our mechanism 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. 


Full Text: PDF