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A New Evaluation Criterion for Allocation Mechanisms with Application to Vehicle License Allocations in China

Author

Listed:
  • Jianxin Rong

    (Sun Yat-Sen University, China)

  • Ning Sun

    (Nanjing Audit University, China)

  • Dazhong Wang

    (Sun Yat-Sen University, China)

Abstract

In this paper, we propose an equality measure for allocation mechanisms with budget constraints to describe the difference in object obtaining opportunities among buyers with different budget ranks. We evaluate allocation mechanisms not only from the perspective of efficiency and revenue, but also with the criterion of equality. As an application of this new evaluation criterion -- the equality measure, we study the vehicle license allocation problem in China, introduce a class of hybrid auction-lottery mechanisms, and evaluate China's vehicle license allocation in a unified framework from the criteria of efficiency, equality, and revenue.

Suggested Citation

  • Jianxin Rong & Ning Sun & Dazhong Wang, 2019. "A New Evaluation Criterion for Allocation Mechanisms with Application to Vehicle License Allocations in China," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 4(1), pages 39-86, November.
    • Handle: RePEc:jmi:articl:jmi-v4i1a2
    DOI: 10.22574/jmid.2019.11.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Equality under budget constraints; hybrid mechanism; vehicle license allocation.;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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