Coordination of Humanitarian Aid by Mediated Communication

Maija Halonen-Akatwijuka (University of Bristol)
In-Uck Park (University of Bristol)

Abstract: We examine a setup where two agents allocate a fixed budget of aid between two equally needy areas. The agents may be biased to one area which is their private information. Direct communication between the agents in uninformative and the resulting allocation of aid is inefficient. We show that a mediator who filters the information communicated by the agents and reveals the collected information only partially can improve aid coordination.