Indivisible units are produced with increasing marginal costs. Under Average Cost, each user pays average cost. Under Random Priority, users are randomly ordered (without bias) and successively offered to buy at the true marginal cost. Both AC and RP inefficiently overproduce. RP tends to...

In a scheduling problem where agents can opt out, we show that the familiar Random Priority (RP)a rule can be improved upon by another mechanism dubbed Probabilistic Serial (PS). Both mechanisms are nonmanipulable in a strong sense, but the latter is Pareto superior to the former and serves a...