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Two necessary conditions for strategy-proofness: On what domains are they also sufficient?

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  • Barberà, Salvador
  • Berga, Dolors
  • Moreno, Bernardo

Abstract

A social choice function may or may not satisfy a desirable property depending on its domain of definition. For the same reason, different conditions may be equivalent for functions defined on some domains, while not in other cases. Understanding the role of domains is therefore a crucial issue in mechanism design. We illustrate this point by analyzing the role of two conditions, monotonicity and reshuffling invariance, that are always necessary, but not always sufficient for strategy-proofness. We identify domains, that we call intertwined, ensuring the equivalence between these two conditions and that of strategy-proofness for whatever functions are defined on them. We prove that some important domains are intertwined: those of single-peaked preferences, both with public and private goods, and also those arising in simple models of house allocation. We also discuss the relationship between our conditions on functions and domains with others considered in the literature.

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Bibliographic Info

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

Volume (Year): 75 (2012)
Issue (Month): 2 ()
Pages: 490-509

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Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:490-509

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

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Keywords: Strategy-proofness; Reshuffling invariance; Monotonicity; Intertwined domains;

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  1. Kalai, Ehud & Muller, Eitan, 1977. "Characterization of domains admitting nondictatorial social welfare functions and nonmanipulable voting procedures," Journal of Economic Theory, Elsevier, vol. 16(2), pages 457-469, December.
  2. ASWAL, Navin & CHATTERJI, Shurojit & SEN, Arunava, 1999. "Dictatorial domains," CORE Discussion Papers 1999040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Barbera Salvador & Gul Faruk & Stacchetti Ennio, 1993. "Generalized Median Voter Schemes and Committees," Journal of Economic Theory, Elsevier, vol. 61(2), pages 262-289, December.
  4. Muller, Eitan & Satterthwaite, Mark A., 1977. "The equivalence of strong positive association and strategy-proofness," Journal of Economic Theory, Elsevier, vol. 14(2), pages 412-418, April.
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  6. Barbera, Salvador & Bevia, Carmen, 2002. "Self-Selection Consistent Functions," Journal of Economic Theory, Elsevier, vol. 105(2), pages 263-277, August.
  7. Jaramillo, Paula & Manjunath, Vikram, 2012. "The difference indifference makes in strategy-proof allocation of objects," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1913-1946.
  8. Salvador Barberà & Dolors Berga & Bernardo Moreno, 2009. "Individual versus group strategy-proofness: when do they coincide?," UFAE and IAE Working Papers 761.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  9. Eric Maskin, 1998. "Nash Equilibrium and Welfare Optimality," Harvard Institute of Economic Research Working Papers 1829, Harvard - Institute of Economic Research.
  10. Salvador Barbera, 1995. "Strategy-Proof Allotment Rules," Discussion Papers 1142, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  11. Bogomolnaia, Anna & Deb, Rajat & Ehlers, Lars, 2005. "Strategy-proof assignment on the full preference domain," Journal of Economic Theory, Elsevier, vol. 123(2), pages 161-186, August.
  12. Szilvia Papai, 2000. "Strategyproof Assignment by Hierarchical Exchange," Econometrica, Econometric Society, vol. 68(6), pages 1403-1434, November.
  13. Barbera, Salvador & Dutta, Bhaskar, 1982. "Implementability via protective equilibria," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 49-65, June.
  14. Ehlers, L., 2001. "Multiple Public Goods and Lexicographic Preferences Replacement Principle," Cahiers de recherche 2001-25, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  15. Eiichi Miyagawa, 2001. "Locating libraries on a street," Social Choice and Welfare, Springer, vol. 18(3), pages 527-541.
  16. Alcalde-Unzu, Jorge & Molis, Elena, 2011. "Exchange of indivisible goods and indifferences: The Top Trading Absorbing Sets mechanisms," Games and Economic Behavior, Elsevier, vol. 73(1), pages 1-16, September.
  17. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
  18. Tatsuyoshi Saijo & Tomas Sjöström & Takehiko Yamato, 2004. "Secure Implementation," Levine's Bibliography 122247000000000615, UCLA Department of Economics.
  19. Sprumont, Yves, 1991. "The Division Problem with Single-Peaked Preferences: A Characterization of the Uniform Allocation Rule," Econometrica, Econometric Society, vol. 59(2), pages 509-19, March.
  20. Shurojit Chatterji & Arunava Sen, 2009. "Tops-Only Domains," Working Papers 06-2009, Singapore Management University, School of Economics.
  21. Shin Sato, 2010. "Circular domains," Review of Economic Design, Springer, vol. 14(3), pages 331-342, September.
  22. Barbera, Salvador & Sonnenschein, Hugo & Zhou, Lin, 1991. "Voting by Committees," Econometrica, Econometric Society, vol. 59(3), pages 595-609, May.
  23. Salvador Barber?Author-Name: Carmen Bevi?Author-Email: Carmen.Bevia@uab.es, . "Stable Condorcet Rules," UFAE and IAE Working Papers 539.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  24. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September.
  25. Ehlers, Lars, 2002. "Coalitional Strategy-Proof House Allocation," Journal of Economic Theory, Elsevier, vol. 105(2), pages 298-317, August.
  26. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
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