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Crowd-sourcing with uncertain quality - an auction approach

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  • Papakonstantinou, A.
  • Bogetoft, P.

Abstract

This article addresses two important issues in crowd-sourcing: ex ante uncertainty about the quality and cost of different workers and strategic behaviour. We present a novel multi-dimensional auction that incentivises the workers to make partial enquiry into the task and to honestly report quality-cost estimates based on which the crowd-sourcer can choose the worker that offers the best value for money. The mechanism extends second score auction design to settings where the quality is uncertain and it provides incentives to both collect information and deliver desired qualities.

Suggested Citation

  • Papakonstantinou, A. & Bogetoft, P., 2013. "Crowd-sourcing with uncertain quality - an auction approach," MPRA Paper 44236, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:44236
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    References listed on IDEAS

    as
    1. Daniel Friedman, 1983. "Effective Scoring Rules for Probabilistic Forecasts," Management Science, INFORMS, vol. 29(4), pages 447-454, April.
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    4. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
    5. Papakonstantinou, A. & Rogers, A & Gerding, E. H. & Jennings, N. R., 2010. "Mechanism Design for the truthful elicitation of costly probabilistic estimates in Distributed Information Systems," MPRA Paper 43324, University Library of Munich, Germany.
    6. David C. Parkes & Jayant Kalagnanam, 2005. "Models for Iterative Multiattribute Procurement Auctions," Management Science, INFORMS, vol. 51(3), pages 435-451, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    crowd-sourcing; Multi-dimensional auctions; Yardstick competition; Score functions; Strictly proper scoring rules;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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