An endogenous justifiability criterion for DA priority violations enables Pareto improvements unattainable by ex-ante consent mechanisms, via a 'just below cutoffs' mechanism and iterative expansion algorithm that converges to a maximal justifiable improvement.
4, 25 Aytek Erdil and Haluk Ergin
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Justifiable Priority Violations
An endogenous justifiability criterion for DA priority violations enables Pareto improvements unattainable by ex-ante consent mechanisms, via a 'just below cutoffs' mechanism and iterative expansion algorithm that converges to a maximal justifiable improvement.