Abstract
We revisit the problem of a principal allocating an indivisible good with costly verification, as it was formulated and analyzed by Ben-Porath et al. (2014). We establish, in this setting, a general equivalence between Bayesian and ex-post incentive compatible mechanisms. We also provide a simple proof showing that the optimal mechanism is a threshold mechanism.
Original language | English (US) |
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Pages (from-to) | 56-62 |
Number of pages | 7 |
Journal | Journal of Mathematical Economics |
Volume | 84 |
DOIs | |
State | Published - Oct 1 2019 |
Keywords
- BIC and EPIC equivalence
- Costly verification
- Optimal mechanisms
ASJC Scopus subject areas
- Economics and Econometrics
- Applied Mathematics