We study allocation mechanisms that utilize costly signaling as a screening tool. A social planner aims to maximize social welfare, defined as the weighted sum of agents' utilities, while implementing a specific allocation rule. Within a broad class of agent preferences, we show that coordination mechanisms (where recommended signals depend on joint reports) are outperformed by non-coordination mechanisms (where signals depend solely on individual reports). When agents are also symmetric, such mechanisms are implementable through coarse-ranking contests.

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