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Army cadets obtain occupations through a centralized process. Three objectives -- increasing retention, aligning talent, and enhancing trust -- have guided reforms to this process since 2006. West Points mechanism for the Class of 2020 exacerbated challenges implementing Army policy aims. We formulate these desiderata as axioms and study their implications theoretically and with administrative data. We show that the Armys objectives not only determine an allocation mechanism, but also a specific priority policy, a uniqueness result that integrates mechanism and priority design. These results led to a re-design of the mechanism, now adopted at both West Point and ROTC.
Optimal mechanism design enjoys a beautiful and well-developed theory, and also a number of killer applications. Rules of thumb produced by the field influence everything from how governments sell wireless spectrum licenses to how the major search en
We show the role that an important equation first studied by Fritz John plays in mechanism design.
How to guarantee that firms perform due diligence before launching potentially dangerous products? We study the design of liability rules when (i) limited liability prevents firms from internalizing the full damage they may cause, (ii) penalties are
The electricity sector has tended to be one of the first industries to face technology change motivated by sustainability concerns. Whilst efficient market designs for electricity have tended to focus upon market power concerns, environmental externa
Game theory is often used as a tool to analyze decentralized systems and their properties, in particular, blockchains. In this note, we take the opposite view. We argue that blockchains can and should be used to implement economic mechanisms because