Coalitional strategy-proofness and fairness
AbstractThis paper considers a fair division problem with indivisible objects, like jobs, houses, positions, etc., and one divisible good (money). The individuals consume money and one object each. The class of fair allocation rules that are strategy-proof in the strong sense that no coalition of individuals can improve the allocation for all of its members, by misrepresenting their preferences, is characterized. It turns out that given a regularity condition, the outcome of a fair and coalition strategy-proof allocation rule must maximize the use of money subject to upper quantity bounds determined by the allocation rule. Due to these restrictions the outcomes of the allocation rule are Pareto efficient only for some preference profiles. In a multi-object auction interpretation of the model, the result is a complete characterization of coalition strategy-proof auction rules.
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Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 40 (2009)
Issue (Month): 2 (August)
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Web page: http://link.springer.de/link/service/journals/00199/index.htm
Other versions of this item:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D - Microeconomics
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