Australian Microeconomic Theory - Haris Aziz (UNSW)

Title: Efficient, Fair, and Incentive-Compatible Healthcare Rationing

Abstract: Fair and efficient rationing of healthcare resources has emerged as an important issue that has been discussed by medical experts, policy-makers, and the general public. We consider a healthcare rationing problem where medical units are to be allocated to patients. Each unit is reserved for one of several categories and the categories may have different priorities for the patients. We present a flexible
allocation rule that respect the priorities, comply with the eligibility requirements, allocate the largest feasible number of units, and do not incentivize agents to hide that they qualify through a category. To the best of our knowledge, this is the first known rule with the aforementioned properties. Our rule also characterizes all possible outcomes that satisfy the first three properties. Moreover, it is polynomialtime computable.