TÜBİTAK 1001 Research Grant will fund Mustafa Oğuz Afacan's research project "Optimal Mechanism Design with Transfers".
The project's abstract: In today’s many real-life object allocation (student placement, dorm assignment, and housing assignment) problems, some individuals forgo their initial assignments because of various reasons. In this case, leftover objects are redistributed among individuals who prefer them. In student placements, these second step assignments are known as transfers. This project, for the first time in the literature, will introduce an object allocation model with transfers. Then, in this model, it will be found that the transfer systems that have been in use in many countries are far away from being efficient. Because of this efficiency loss, the project will introduce an allocation mechanism that includes transfers. Then, it will mathematically be proven that the project’s mechanism produces efficient allocations. The use of the project’s mechanism in object allocation problems will contribute to the economy by increasing efficiency in those markets.