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Efficient and stable collective choices under gregarious preferences

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  • Massó, Jordi
  • Nicolò, Antonio

Abstract

We consider collective choice problems where a set of agents have to choose an alternative from a finite set and agents may or may not become users of the chosen alternative. An allocation is a pair given by the chosen alternative and the set of its users. Agents have gregarious preferences over allocations: given an allocation, they prefer that the set of users becomes larger. We require that the final allocation be efficient and stable (no agent can be forced to be a user and no agent who wants to be a user can be excluded). We propose a two-stage sequential mechanism whose unique subgame perfect equilibrium outcome is an efficient and stable allocation which also satisfies a maximal participation property.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 64 (2008)
Issue (Month): 2 (November)
Pages: 591-611

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Handle: RePEc:eee:gamebe:v:64:y:2008:i:2:p:591-611

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Web page: http://www.elsevier.com/locate/inca/622836

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Keywords: Public goods Gregarious preferences Subgame perfect implementation;

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  1. M. Sanver, 2006. "Nash implementing non-monotonic social choice rules by awards," Economic Theory, Springer, vol. 28(2), pages 453-460, 06.
  2. D. Berga & G. Bergantiños & J. Massó & A. Neme, 2006. "On Exiting After Voting," International Journal of Game Theory, Springer, vol. 34(1), pages 33-54, April.
    • Dolors Berga & Gustavo Bergantiños & Jordi Massó & Alejandro Neme, 2003. "On exiting after voting," Estudios de Economia, University of Chile, Department of Economics, vol. 30(2 Year 20), pages 261-288, December.
  3. Moore, John & Repullo, Rafael, 1988. "Subgame Perfect Implementation," Econometrica, Econometric Society, vol. 56(5), pages 1191-1220, September.
  4. Anna Bogomolnaia & Antonio Nicolo, 2005. "Stable Assignment of Public Facilities under Congestion," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(1), pages 65-91, 02.
  5. Jackson, Matthew O. & Nicolo, Antonio, 2002. "The Strategy-Proof Provision of Public Goods Under Congestion and Crowding Preferences," Working Papers 1148, California Institute of Technology, Division of the Humanities and Social Sciences.
  6. Jackson, Matthew O., 1999. "A Crash Course in Implementation Theory," Working Papers 1076, California Institute of Technology, Division of the Humanities and Social Sciences.
  7. Vartiainen, Hannu, 2007. "Subgame perfect implementation: A full characterization," Journal of Economic Theory, Elsevier, vol. 133(1), pages 111-126, March.
  8. Abreu, Dilip & Sen, Arunava, 1990. "Subgame perfect implementation: A necessary and almost sufficient condition," Journal of Economic Theory, Elsevier, vol. 50(2), pages 285-299, April.
  9. Bag, Parimal Kanti & Winter, Eyal, 1999. "Simple Subscription Mechanisms for Excludable Public Goods," Journal of Economic Theory, Elsevier, vol. 87(1), pages 72-94, July.
  10. Maskin, Eric, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Wiley Blackwell, vol. 66(1), pages 23-38, January.
  11. Hannu Vartiainen, 2007. "Subgame perfect implementation of voting rules via randomized mechanisms," Social Choice and Welfare, Springer, vol. 29(3), pages 353-367, October.
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