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Quota Mechanisms: Finite-Sample Optimality and Robustness

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abstract

A quota mechanism, such as a mandatory grading curve, links together multiple decisions. We analyze the performance of quota mechanisms when the number of linked decisions is finite and the designer has imperfect knowledge of the type distribution. Using a new optimal transport approach, we derive an ex-post decision error guarantee for quota mechanisms. This guarantee cannot be improved by any mechanisms without transfers. We quantify the sensitivity of quota mechanisms to errors in the designer's estimate of the type distribution. Finally, we show that quotas are robust to a range of agents' beliefs about each other.

fields

econ.TH 1

years

2026 1

verdicts

UNVERDICTED 1

representative citing papers

Dynamic Cheap Talk without Feedback

econ.TH · 2026-04-29 · unverdicted · novelty 7.0

Dynamic cheap talk without action feedback allows the sender to achieve any equilibrium payoff from a partial-commitment persuasion model and the Bayesian persuasion payoff when her payoff is state-independent.

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  • Dynamic Cheap Talk without Feedback econ.TH · 2026-04-29 · unverdicted · none · ref 1 · internal anchor

    Dynamic cheap talk without action feedback allows the sender to achieve any equilibrium payoff from a partial-commitment persuasion model and the Bayesian persuasion payoff when her payoff is state-independent.