1 Department of Economics, Faculty of Social Sciences, Københavns Universitet2 Department of Economics, Faculty of Social Sciences, Københavns Universitet
A manager/mechanism designer must allocate a set of money prizes ($1,$2,…,$n) between n agents working in a team. The agents know the state, i.e., who contributed most, second most, etc. The agents’ preferences over prizes are state independent. We incorporate the possibility that the manager knows the state with a tiny probability and present a simple mechanism that uniquely awards prizes that respect the true state.
Economics Letters, 2013, Vol 119, Issue 3
Faculty of Social Sciences; Full implementation; Direct mechanism; Verifiable information; Rank-order tournaments