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Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society
Optimal robust allocation of private goods
Vol.29, No.4, December 2018, 1–15
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Kiho Yoon
(Korea University)
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Abstract
We characterize the optimal robust mechanisms for the allocation of private objects, where robust mechanisms are those mechanisms that satisfy dominant strategy incentive compatibility, ex-post individual rationality, and expost no budget deficit, and optimal robust mechanisms are the ones that maximize the expected sum of players' payoffs among all robust mechanisms. With a certain assumption on the payoff of the lowest possible type, we provide a complete description of optimal robust mechanisms with any number of players and objects.
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Keywords
robust mechanism design, dominant strategy, budget balance, expost individual rationality |
JEL classification codes
C72, D47, D82 |
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