In this paper, we study an education-planning problem by using a mechanism design approach. We consider a model where agents have different abilities in acquiring education and belong to different social groups (for instance, races or genders). Under the information constraint that the abilities of agents are observable and group memberships are unobservable, we derive two sets of education
... [Show full abstract] policies derived under Rawlsian and utilitarian social welfare functions. We show that the utilitarian planner does not discriminate agents by their social group membership, while the Rawlsian planner provides a form of affirmative action policy.