arXiv subjects

Albin Erlanson

Publications and source records attributed to Albin Erlanson.

3 recordsLinked to original sources

arXiv2024

Optimal allocations with capacity constrained verification

A principal has $m$ identical objects to allocate among a group of $n$ agents. Objects are desirable and the principal's value of assigning an object to an agent is the agent's private information. The principal can verify up to $k$ agents, where $k<m$, thereby perfectly learning the types of those verified. We find the mechanism that maximizes the principal's expected utility when no monetary transfers are available. In this mechanism, an agent receives an object if (i) his type is above a cutoff and among the $m$ highest types, (ii) his type is above some lower cutoff but among the $k$ highest types, or (iii) he receives an object in a lottery that allocates the remaining objects randomly.

econ.TH↗

arXiv2020

Optimal Trade-Off Between Economic Activity and Health During an Epidemic

This paper considers a simple model where a social planner can influence the spread-intensity of an infection wave, and, consequently, also the economic activity and population health, through a single parameter. Population health is assumed to only be negatively affected when the number of simultaneously infected exceeds health care capacity. The main finding is that if (i) the planner attaches a positive weight on economic activity and (ii) it is more harmful for the economy to be locked down for longer than shorter time periods, then the optimal policy is to (weakly) exceed health care capacity at some time.

econ.TH↗

arXiv2019

Costly Verification in Collective Decisions

We study how a principal should optimally choose between implementing a new policy and maintaining the status quo when information relevant for the decision is privately held by agents. Agents are strategic in revealing their information; the principal cannot use monetary transfers to elicit this information, but can verify an agent's claim at a cost. We characterize the mechanism that maximizes the expected utility of the principal. This mechanism can be implemented as a cardinal voting rule, in which agents can either cast a baseline vote, indicating only whether they are in favor of the new policy, or they make specific claims about their type. The principal gives more weight to specific claims and verifies a claim whenever it is decisive.

econ.TH↗