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Demonstrates a new mechanism to maximize transactions in markets, indicating potential for effective policymaking.
There are many situations where policymakers are primarily concerned with the availability and accessibility of goods or services. Examples include electricity, food, housing, medical supplies, et cetera . In such cases, the social goal may be to maximize the number of transactions, which we refer to as a maximal matching. This paper presents a mechanism that implements this objective for markets characterized by bilateral transactions. The mechanism is incentive compatible, but, like the VCG-mechanism that yields the total-utility-maximizing outcome, it requires external funding.
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Triêu et al. (2026) studied this question.
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