Abstract
We analyze the design of a mechanism to extract a ranking of individuals according to a unidimensional characteristic, such as ability or need. Individuals, connected on a social network, only have local information about the ranking. We show that a planner can construct an ex post incentive compatible and efficient mechanism if and only if every pair of friends has a friend in common.
Original language | English |
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Pages (from-to) | 176-214 |
Number of pages | 39 |
Journal | American Economic Journal: Microeconomics |
Volume | 14 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2022 |
Externally published | Yes |