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Persistent link: https://www.econbiz.de/10005520916
We characterize the structure of optimal assignment rules when both allocative inefficiency and expenditure inefficiency (e.g., rent-seeking) are present. We find that the optimal structure critically depends on how the hazard rate of the value distribution behaves, and that it is often optimal...
Persistent link: https://www.econbiz.de/10010875280