Necessary and sufficient conditions for optimality of the auction principle
We examine a planning procedure for the allocation of a one-dimensional resource in an active system by the auction principle (the allocations are made in the order of decreasing resource utilization efficiencies as reported by the divisions). It is shown that the necessary and sufficient conditions for optimality of the auction principle are when the divisional production functions (efficiency functions) satisfy a certain differential equation.
scientific article; zbMATH DE number 4014438