Seminar in Microeconomics - Anh Triêu (Maastricht University)

There are many situations where policymakers are primarily concerned with the availability and accessibility of goods or services. Examples include electricity, food, housing, medical supplies, et cetera. In such cases, the social goal may be to maximize the number of transactions, which we refer to as a maximal matching. This paper presents a mechanism that implements this objective. The mechanism satisfies the incentive and participation constraints, but requires external funding.