Friend-Based Ranking
Journal article: 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. We characterize the windmill network as the sparsest social network for which the planner can always construct a complete ranking.
Author(s)
Francis Bloch, Matthew Olckers
Journal
- American Economic Journal: Microeconomics
Date of publication
- 2022
Keywords JEL
Pages
- 176-214
URL of the HAL notice
Version
- 1
Volume
- 14