Optimally Curating an Event

摘要

We study the optimal design of a self-financing event, a problem that requires balancing the recruitment of costly, positive-value participants with revenue-generating agents who may impose negative values on the event. We introduce a novel two-sided mechanism design framework with plus agents equipped with private costs and positive impact, and minus agents with private values and negative impact upon inclusion in the event, to maximize the overall quality of the event under a budget-balanced (BB) constraint so that the designer does not run a deficit. We conduct a comprehensive study on the theory of optimal event curation on various utility functions. For additive utility, we fully characterize the optimal incentive-compatible Bayesian mechanism under both the ex-ante and ex-post BB constraints. For submodular utility, we propose an ex-ante BB mechanism that achieves a constant-factor approximation to the optimal Bayesian mechanism.