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The Manipulability of Fair Solutions in Assignment of an Indivisible Object with Monetary Transfers

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  • YUJI FUJINAKA
  • TOYOTAKA SAKAI

Abstract

Public decision making often involves the problem of fairly assigning one indivisible object to agents with monetary transfers. An example is the choice of the location of a garbage incineration facility where the accepting district should receive fair compensations from other districts. In this problem, we show that for broad classes of solutions satisfying a welfare lower bound and an efficiency-oriented condition, the set of equilibrium allocations in the manipulation game associated with a given solution coincides with the set of all envy-free allocations. This generalizes Tadenuma and Thomson's equivalence result for a class of envy-free solutions. Our result covers the Shapley value, which is not covered by Tadenuma and Thomson's result. Copyright 2007 Blackwell Publishing, Inc..

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 9 (2007)
Issue (Month): 6 (December)
Pages: 993-1011

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Handle: RePEc:bla:jpbect:v:9:y:2007:i:6:p:993-1011

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Cited by:
  1. Yuji Fujinaka, 2008. "A Bayesian Incentive Compatible Mechanism for Fair Division," ISER Discussion Paper 0721, Institute of Social and Economic Research, Osaka University.
  2. Conan Mukherjee, 2014. "Fair and group strategy-proof good allocation with money," Social Choice and Welfare, Springer, vol. 42(2), pages 289-311, February.
  3. Hirofumi Yamamura & Ryo Kawasaki, 2013. "Generalized average rules as stable Nash mechanisms to implement generalized median rules," Social Choice and Welfare, Springer, vol. 40(3), pages 815-832, March.
  4. Toyotaka Sakai, 2008. "Second price auctions on general preference domains: two characterizations," Economic Theory, Springer, vol. 37(2), pages 347-356, November.
  5. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer, vol. 50(2), pages 499-521, June.
  6. Toyotaka Sakai, 2013. "An equity characterization of second price auctions when preferences may not be quasilinear," Review of Economic Design, Springer, vol. 17(1), pages 17-26, March.
  7. Carmen BeviƩ, 2009. "Manipulation Games in Economics with Indivisible Goods," Working Papers 371, Barcelona Graduate School of Economics.

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