Allocation Mechanisms

Allocation mechanisms are methods used to distribute limited resources, goods, or opportunities among individuals or groups. They aim to do so fairly, efficiently, and according to specific rules or priorities. Examples include auction systems, where the highest bidder gets the item, or lotteries, where winners are chosen randomly. These mechanisms help balance competing needs and ensure resources are assigned systematically, rather than arbitrarily. Ultimately, they guide how scarce resources are allocated to meet different objectives like fairness, incentive alignment, or maximizing overall benefits.