We study two variants of an allocation problem where two parties lay proportional claims to an asset, and an arbiter has a final say on allocation. The two variants we study vary by the incentives to the arbiter. In one variant, the arbiter is incentivized proportional to the payoff to the...

Allocation and exchange of discrete resources such as kidneys, school seats, and many other resources for which agents have single-unit demand is conducted via direct mechanisms without monetary transfers. Incentive compatibility and efficiency are primary concerns in designing such mechanisms....