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Distributing Awards Efficiently: More on King Solomon's Problem

Abstract

We consider a multi-award generalisation of King Solomon's problem: k identical and indivisible awards should be distributed among agents, k 1) prizes efficiently in sub-game perfect equilibria without any monetary transfers in equilibrium. Finally, in the multi-awards case we relax the complete information assumption and achieve implementation of efficient allocation by iterative elimination of weakly dominated strategies, using generalisation of Olszewski's (2003) mechanism

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