Economic Theory Seminar Series - David Delacretaz (University of Manchester)

Title: Simultaneous Processing in Multi-Prioity Systems

Abstract: Policymakers frequently use multi-priority systems to combine competing objectives in allocating a scarce resource. In a multi-priority system, the capacity is split across several categories that implement different priorities. The order in which categories are processed impacts the outcome and has led to unintended consequences. I introduce a new solution, which handles all categories simultaneously. I characterize my solution, showing that it satisfies basic desiderata and is category neutral: If an agent qualifies for n categories, she takes 1/n units from each. A practical advantage is that the categories’ relative importance is captured by the amount of capacity they allocate.