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Efficiency and strategy-proofness in multi-unit object allocation problems with non-quasi-linear preferences: A positive result

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  • Shinozaki, Hiroki

Abstract

We consider the problem of allocating multiple units of an object to agents with payments. Agents demand at most two units, and have preferences that are not necessarily quasi-linear. We propose a new rule that we call the generalized Vickrey rule with initial ownership of single units, and establish it satisfies efficiency, strategy-proofness, and individual rationality. This contrasts with recent impossibility results for multi-demand non-quasi-linear preferences showing that no rule satisfies the three properties together with no subsidy for losers (Baisa, 2020; Shinozaki et al., 2022).

Suggested Citation

  • Shinozaki, Hiroki, 2023. "Efficiency and strategy-proofness in multi-unit object allocation problems with non-quasi-linear preferences: A positive result," Economics Letters, Elsevier, vol. 223(C).
    • Handle: RePEc:eee:ecolet:v:223:y:2023:i:c:s0165176523000149
    DOI: 10.1016/j.econlet.2023.110989
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    References listed on IDEAS

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    1. Hiroki Saitoh & Shigehiro Serizawa, 2008. "Vickrey allocation rule with income effect," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 35(2), pages 391-401, May.
    2. Baisa, Brian, 2020. "Efficient multi-unit auctions for normal goods," Theoretical Economics, Econometric Society, vol. 15(1), January.
    3. Toyotaka Sakai, 2008. "Second price auctions on general preference domains: two characterizations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(2), pages 347-356, November.
    4. Hiroki Shinozaki & Tomoya Kazumura & Shigehiro Serizawa, 2020. "Multi-unit Object Allocation Problems with Money for (Non)Decreasing Incremental Valuations: Impossibility and Characterization Theorems," ISER Discussion Paper 1097r, Institute of Social and Economic Research, Osaka University, revised Apr 2022.
    5. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
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    Cited by:

    1. Di Feng, 2023. "Efficiency in Multiple-Type Housing Markets," Papers 2308.14989, arXiv.org, revised Dec 2023.

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    More about this item

    Keywords

    Efficiency; Strategy-proofness; Individual rationality; Non-quasi-linear preferences; Subsidies; Multi-unit auctions;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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