An indivisible object is to be allocated at no cost to the agent who values it most. We provide a simple two-stage mechanism, which implements the desired outcome when it is common knowledge that the agent who values the object most knows that. At each stage of the game, all players have weakly dominant strategies. Moreover, if the two highest valuations are common knowledge, the second stage of the game is redundant, and the outcome is implemented in weakly dominant strategies.
ASJC Scopus subject areas
- Economics and Econometrics