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...

A principal allocates an object among a finite number of agents, each of whom values the object. Each agent has access to private information about the principal's payoff if he receives the object. There are no monetary transfers. The object is allocated based on the agents' reports. The...