Connections Workshop: Mathematics and Computer Science of Market and Mechanism Design: "Fraud-Proof Non-Market Allocation Mechanisms"
Presenter
September 8, 2023
Keywords:
- market design
- mechanism design
- information design
- contract theory
- auctions
- matching
Abstract
We study the optimal design of fraud-proof allocation mechanisms with- out transfers. An agent’s eligibility relies on a score reflecting social value, but gaming generates misallocations, mistrust, unfairness and other nega- tive externalities. We characterize optimal allocation rules that are immune to gaming under two classes of gaming technologies. We examine the im- pact of demographic changes on allocations within and across identifiable groups, while accounting for resource and quota constraints. Fraud-proof allocation rules enhance fairness and trust in allocation systems at the cost of some allocative efficiency.