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An incentive‐compatible modification of the heal algorithm
Author(s) -
Servi L. D.,
Ho Y. C.
Publication year - 1983
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/oca.4660040307
Subject(s) - incentive compatibility , incentive , computer science , compatibility (geochemistry) , algorithm , mathematical optimization , mathematics , microeconomics , economics , engineering , chemical engineering
This note proposes a simple modification of the Heal algorithm for resource allocation that has the property of incentive‐compatibility. It is shown, under some assumptions, that participants can be induced to report the truth in their own interest so as to achieve a group optimum.