Visibly fair mechanisms


Bó, Inácio ; Caspari, Gian ; Khanna, Manshu


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URN: urn:nbn:de:bsz:180-madoc-713887
Document Type: Working paper
Year of publication: 2025
The title of a journal, publication series: ZEW Discussion Papers
Volume: 25-048
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C78 , D47 , D78,
Keywords (English): matching theory , market design , indirect mechanisms
Abstract: Priority-based allocation often requires eliminating justified envy, making serial dictatorship (SD) the only non-wasteful direct mechanism with that property. However, SD's outcomes can conflict with the policymaker's objectives. We introduce visible fairness, a framework where fairness is evaluated using coarser information. This is achieved by designing message spaces that strategically conceal information that could render desired allocations unfair. We characterize these mechanisms as generalizations of SD, establish conditions for strategy-proofness, and show how to implement distributional constraints. This creates a new trade-off: achieving distributional goals may require limiting preference elicitation, forgoing efficiency gains even when compatible with the constraints.




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