Che, Yeon-Koo; Gale, Ian; Kim, Jinwoo - In: International Journal of Industrial Organization 31 (2013) 5, pp. 659-665
We study alternative methods of assigning scarce resources to individuals who may be liquidity-constrained. Selling the … resources via auctions is increasingly popular, but that method may produce an inefficient allocation when agents are liquidity … constrained. A simple non-market scheme such as random assignment does better, if resale is allowed, since individuals with a high …