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SSRN Electronic Journal
Article . 2023 . Peer-reviewed
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Ordinal Simplicity and Auditability in Discrete Mechanism Design

Authors: Pycia, Marek; Ünver, M Utku;

Ordinal Simplicity and Auditability in Discrete Mechanism Design

Abstract

Designing mechanisms for environments without transfers, market designers usually restrict attention to ordinal mechanisms. Ordinal mechanisms are simpler for both designers and participants but miss potentially welfare-relevant information. Under what conditions focusing on ordinal mechanisms is without loss? We show that, in general, all group strategy-proof mechanisms are ordinal. All mechanisms maximizing an Arrovian social welfare function are ordinal; in a large class of environments, such Arrovian efficiency is implied by Pareto efficiency and a simple auditability condition. Strategy-proof mechanisms that are simple to audit are also ordinal. As applications, we characterize important classes of mechanisms in public choice as well as single-unit-demand and multiple-unit-demand allocation of private goods.

Country
Switzerland
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Keywords

10007 Department of Economics, 330 Economics

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Top 10%
Average
Average
Green