Che, Yeon-Koo; Gale, Ian; Kim, Jinwoo - In: Review of Economic Studies 80 (2013) 1, pp. 73-107
This article studies different methods of assigning a good to budget-constrained agents. Schemes that assign the good randomly and allow resale may outperform the competitive market in terms of Utilitarian efficiency. The socially optimal mechanism involves random assignment at a discount--an...