Normative Foundations and Behavioral Implications of Non-Market Allocation (NORMA)

Abstract:

In recent years, a variety of allocation mechanisms have been introduced that have broad normative appeal and significant operational potential for a wide range of problems such as surplus division, bankruptcy, and network sharing. However, little is known about their application to the provision of public goods and health care services, and the strategic and behavioral implications remain largely unexplored. For instance, which mechanisms are (not) manipulable? Which fairness principles underlie (health care) allocation mechanisms? How can we incorporate risk- and inequality aversion? The purpose of the project is to advance our understanding of the efficiency and distributive consequences of non-market allocation mechanisms, and to explore the normative basis and behavioral aspects of their application to health care rationing and priority setting. The results will provide input for policy design and evaluation, improving allocation decisions and social welfare in general.