The Combinatorial Retention Auction Mechanism (CRAM)
MetadataShow full item record
We propose a reverse uniform price auction called Combinatorial Retention Auction Mechanism (CRAM) that integrates both monetary and non-monetary incentives (NMIs). CRAM computes the cash bonus and NMIs to a single cost parameter, retains the lowest cost employees and provides them with compensation equal to the cost of the first excluded employee. CRAM is dominant strategy incentive compatible. We provide optimal bidding strategy, and show that there is cost saving compared to a benchmark auction (monetary retention auction). Because CRAM and the benchmark may retain different employees, we provide for whom and under what conditions the utility may increase or decrease by CRAM. Finally, we show that there is an increase in the total social welfare by utilizing CRAM to the benchmark.
Approved for public release; distribution is unlimited.Revised version
NPS Report NumberNPS-GSBPP-13-004
Showing items related by title, author, creator and subject.
Application of a uniform price quality adjusted discount auction for assigning voluntary separation pay Pearson, Quincy R. (Monterey, California. Naval Postgraduate School, 2011-03);This thesis examined the feasibility of using a quality adjusted auction for retaining quality officers while assigning voluntary separation pay to Marine officers. The study used survey data to set parameters for the ...
Increasing the effectiveness of Navy retention compensation by evaluating different auction compensation formats Triplett, Terry W.; Winters, Michael K. (Monterey, California: Naval Postgraduate School, 2015-06);With the U.S. military under intense scrutiny to cut costs, the Department of Defense must determine ways to use its limited resources more efficiently. One financial incentive ripe for change is the retention bonus. This ...
The uniform price quality adjusted discount auction for aviation continuation pay : potential benefits to the U.S. Marine Corps White, Christopher S. (Monterey, California. Naval Postgraduate School, 2010-03);This objective of this thesis is to explore the potential benefits realized by the Marine Corps if the current Aviation Continuation Pay (ACP) system is replaced with an auction mechanism that utilizes Quality Adjusted ...