arXiv AI By Eduardo Perez-Richet, Vasiliki Skreta

Falsification-proof non-market allocation mechanisms

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The paper examines allocation mechanisms that rely on manipulable characteristics and shows that naive optimal rules lead to falsification and inefficiency. It characterizes optimal falsification‑proof rules across various falsification technologies and identifies an honesty condition under which these rules solve the planner’s unconstrained problem of maximizing a weighted sum of allocative surplus and agents’ welfare.

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