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This paper will analyze migrant distribution in the European Union and therefore add a new scope of application to auction mechanisms. If bidders have to pay a share of the expenditures, auction mechanisms can solve distributional problems between individuals, groups, or countries preferable. In this case, the incentives for bid shading are more ambiguous than in standard multi-unit auctions. Therefore, we derive a gambling condition for bid shading in the Uniform Price Auction and the Vickrey Auction. Based on these results we introduce a strategy-proof distribution mechanism. Additionally, we analyze the main characteristics for a country's value function and the respective bid vector. Finally, we show how the European Union could implement such a preference based migrant distribution mechanism.
