Maximal Procurement under a Budget

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Tác giả: Nicole Immorlica, Brendan Lucier, Nicholas Wu

Ngôn ngữ: eng

Ký hiệu phân loại: 355.62 Supply and financial administration and related topics

Thông tin xuất bản: 2024

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Bộ sưu tập: Metadata

ID: 202426

 We study the problem of a principal who wants to influence an agent's observable action, subject to an ex-post budget. The agent has a private type determining their cost function. This paper endogenizes the value of the resource driving incentives, which holds no inherent value but is restricted by finite availability. We characterize the optimal mechanism, showing the emergence of a pooling region where the budget constraint binds for low-cost types. We then introduce a linear value for the transferable resource
  as the principal's value increases, the mechanism demands more from agents with binding budget constraint but less from others.
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