We consider locally incentive compatible mechanisms with deterministic allocation rules and transfers with quasilinear utility. We identify a rich class of type spaces, which includes the single peaked type space, where local incentive compatibility does not imply incentive compatibility. Our main result shows that in such type spaces, a mechanism is locally incentive compatible and payment-onl...

Prosper, the largest online social lending marketplace with over a million members and $207 million in funded loans, uses an auction amongst lenders to finance each loan. In each auction, the borrower specifies D, the amount he wants to borrow, and a maximum acceptable interest rate R. Lenders specify the amounts ai they want to lend, and bid on the interest rate, bi, they’re willing to receive...

Digital payment systems are an evolving field in present day with the recent enhancements in seamless digital currencies. Thus, despite the benefits of cryptocurrency based digital payments systems, their adoption and diffusion within general payment platform domain are significantly hindered. The blockchain architecture is widely recognized as a promising mechanism to support the management of...

This paper studies the intraday payment behavior of banks under the real time gross settlement(RTGS) system. Our game structure is based on Bech and Garratt (2003), with additional stages for recycling reserve. This gives us a variant of the hawk–dove structure, which enables efficient reserve recycling in an equilibrium. Based on this structure, we analyze the welfare effects of introducing a ...

Recent research suggests that the method of making a payment can influence the willingness to pay and consumption behavior. In this manuscript, we argue that payment mechanisms differ from each other along the dimensions of transparency, and that the degree of transparency correlates positively with the pain of paying using the mechanism, and negatively with consumption and spending. We replica...

We empirically investigate the effect of the payment mechanism on contingent values by asking a willingness-to-pay question with one of three different payment mechanisms: individual contribution, contribution with provision point, and referendum. We Ž nd statistical evidence of more afŽ rmative responses in the referendum treatment relative to the individual contribution treatment, some weak s...

Medicare pays "at-risk" health maintenance organizations a prospective capitation amount that is established by the adjusted average per capita cost (AAPCC) formula for estimating the amount enrollees would have cost had they remained in the fee-for-service sector. Because the AAPCC accounts for a very small percentage of the variation in beneficiary costs, considerable research has been devote...

Electronic payment systems based on anonymous coins have been invented as a digital equivalent to physical banknotes. However, von Solms and Naccache discovered that such anonymous coins are also very well suited to support criminals in blackmailing. In this paper we present a payment system, which has an efficient tracing and revocation mechanism for blackmailed coins. The used tracing method ...

This paper presents a novel content accounting architecture. Content accounting is becoming increasingly important since it is anticipated that in the near future more billable content on the Internet will be published. The architecture presented in this paper has a distributed functionality and an innovative view with respect to the payment system that is incorporated. The architecture enables...