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Bundling in exchange markets with indivisible goods

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  • Klaus, Bettina
  • Dimitrov, Dinko
  • Haake, Claus-Jochen

Abstract

We study efficient and individually rational exchange rules for markets with heterogeneous indivisible goods that exclude the possibility that an agent benefits by bundling goods in her endowment. Even if agents'' preferences are additive, no such rule exists.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4KV3XJF-2/2/1c58281b36c6137d5eed71985ebd5f9d
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 93 (2006)
Issue (Month): 1 (October)
Pages: 106-110

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Handle: RePEc:eee:ecolet:v:93:y:2006:i:1:p:106-110

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  1. Murat Sertel, 2000. "Manipulability of the Men-(Women) Optimal Matching Rule via Endowments," Departmental Working Papers 0014, Bilkent University, Department of Economics.
  2. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
  3. Tayfun Sonmez, 1999. "Strategy-Proofness and Essentially Single-Valued Cores," Econometrica, Econometric Society, vol. 67(3), pages 677-690, May.
  4. Dinko Dimitrov & Claus-Jochen Haake, 2005. "Regrouping of endowments in exchange markets with indivisible goods," Working Papers 367, Bielefeld University, Center for Mathematical Economics.
  5. Postlewaite, Andrew, 1979. "Manipulation via Endowments," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 255-62, April.
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