• Media type: E-Book
  • Title: Information Design for Spatial Resource Allocation
  • Contributor: Candogan, Ozan [VerfasserIn]; Wu, Manxi [VerfasserIn]
  • imprint: [S.l.]: SSRN, [2023]
  • Extent: 1 Online-Ressource (63 p)
  • Language: English
  • DOI: 10.2139/ssrn.4505414
  • Identifier:
  • Keywords: Information design ; spatial resource allocation ; monotone partitional information mechanisms
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 7, 2023 erstellt
  • Description: In this paper, we study platforms where resources and jobs are spatially distributed, and resources have the flexibility to strategically move to different locations for better payoffs. The price of the service at each location depends on the number of resources present and the market size, which is modeled as a random state. Our focus is on how the platform can utilize information about the underlying state to influence resource repositioning decisions and ultimately increase commission revenues. We establish that in many practically relevant settings a simple monotone partitional information disclosure policy is optimal. This policy reveals state realizations below a threshold and above a second (higher) threshold, and pools all states in between and maps them to a unique signal realization. We also provide algorithmic approaches for obtaining (near-)optimal information structures that are monotone partitional in general settings
  • Access State: Open Access