A principal who values an object allocates it to one or more agents. Agents learn private information (signals) from an information designer about the allocation payoff to the principal. Monetary transfer is not available but the principal can costly verify agents' private signals. The...

I study a mechanism design problem of allocating a single good to an agent when the mechanism is followed by a post-mechanism game (aftermarket) played between the agent and a third-party. The aftermarket is beyond the direct control of the designer. However, she can influence the information...

I study a mechanism design problem in which a designer allocates a single good to one of several agents, and the mechanism is followed by an aftermarket -- a post-mechanism game played between the agent who acquired the good and third-party market participants. The designer has preferences over...

In this paper, we examine the optimal mechanism design of selling an indivisible object to one regular buyer and one publicly known buyer, where inter-buyer resale cannot be prohibited. The resale market is modeled as a stochastic ultimatum bargaining game between the two buyers. We fully...

This paper comprehensively explores the compelling framework encompassing Opportunity Econophysics, Opportunity Cones, Conscious Agents, and the Traces of the Conscious Dimension within the context of economic systems. The interdisciplinary nature of this framework integrates concepts from...

A risk-neutral principal considers hiring one agent to improve a valuable, observable outcome. Who to hire? How to motivate? In this paper, the principal designs an incentive contract that pays according to the realized outcome and sells the contract to an agent through an auction. The paper...

A principal wishes to distribute an indivisible good to a population of budget-constrained agents. Both valuation and budget are an agent's private information. The principal can inspect an agent's budget through a costly verification process and punish an agent who makes a false statement. I...

A principal distributes an indivisible good to budget‐constrained agents when both valuation and budget are agents' private information. The principal can verify an agent's budget at a cost. The welfare‐maximizing mechanism can be implemented via a two‐stage scheme. First, agents report...

Online "feedback mechanisms" - also known as "reputation systems" - have been implemented in the most important private e-markets, such as eBay, Yahoo!, Amazon to foster trust and cooperation among trading partners. In this paper we discuss the main issues relevant for the optimal design of such...