Planning mechanisms for the allocation of a scarce resource (Q802462)

We consider a wide class of planning mechanisms which allocate a scarce resource depending on the value of a utilization efficiency measure proposed by the divisions. In the framework of these planning mechanisms, the divisions have strategies which are optimal both in the sense of the maximum guaranteed outcome principle and in Edgeworth's sense. Depending on the number of divisions and the initial information available to the headquarters, we derive mechanisms which prove to be optimal for the headquarters in the given class.