@article{221aeb82f674419d873419c9af77bc2b,
title = "A note on optimal allocation with costly verification",
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.",
keywords = "BIC and EPIC equivalence, Costly verification, Optimal mechanisms",
author = "Albin Erlanson and Andreas Kleiner",
note = "Funding Information: We are grateful to the Editor, an Associate Editor and a referee for helpful suggestions and comments. We would also like to thank Daniel Kr{\"a}hmer, Bart Lipman and Benny Moldovanu for detailed comments and discussions. Albin Erlanson gratefully acknowledges financial support from the European Research Council and the Jan Wallander and Tom Hedelius Foundation. Andreas Kleiner gratefully acknowledges financial support from SFB-TR 15. Publisher Copyright: {\textcopyright} 2019 Elsevier B.V.",
year = "2019",
month = oct,
doi = "10.1016/j.jmateco.2019.06.002",
language = "English (US)",
volume = "84",
pages = "56--62",
journal = "Journal of Mathematical Economics",
issn = "0304-4068",
publisher = "Elsevier",
}