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Coalitional strategy-proofness and fairness

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  • Lars-Gunnar Svensson

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Abstract

This 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 Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 40 (2009)
Issue (Month): 2 (August)
Pages: 227-245

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Handle: RePEc:spr:joecth:v:40:y:2009:i:2:p:227-245

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Related research

Keywords: Indivisibilities; Fairness; Coalitional strategy-proofness; Wages; Multi-object auction; C60; C68; C71; C78; D61; D63; D71; D78;

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  1. Tadenuma, Koichi & Thomson, William, 1991. "No-Envy and Consistency in Economies with Indivisible Goods," Econometrica, Econometric Society, vol. 59(6), pages 1755-67, November.
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  17. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
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Citations

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Cited by:
  1. Paula Jaramillo & Cagatay Kayi & Flip Klijn, 2012. "Asymmetrically fair rules for an indivisible good problem with a budget constraint," DOCUMENTOS DE TRABAJO 009381, UNIVERSIDAD DEL ROSARIO.
  2. Andersson, Tommy & Svensson, Lars-Gunnar, 2007. "Weakly Fair Allocations and Strategy-Proofness," Working Papers 2007:3, Lund University, Department of Economics, revised 03 Jul 2007.
  3. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer, vol. 50(2), pages 499-521, June.
  4. ANDERSSON, Tommy & EHLERS, Lars & SVENSSON, Lars-Gunnar, 2010. "Budget-Balance, Fairness and Minimal Manipulability," Cahiers de recherche 18-2010, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  5. Mustafa Afacan, 2013. "The welfare effects of pre-arrangements in matching markets," Economic Theory, Springer, vol. 53(1), pages 139-151, May.
  6. Yuji Fujinaka & Takuma Wakayama, 2011. "Secure implementation in Shapley–Scarf housing markets," Economic Theory, Springer, vol. 48(1), pages 147-169, September.
  7. Serizawa, Shigehiro & Morimoto, Shuhei, 0. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society.
  8. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson, 2012. "(Minimally) ?-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 04-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  9. Tommy ANDERSSON & Lars EHLERS, 2013. "An Algorithm for Identifying Agent-k-Linked Allocations in Economies with Indivisibilities," Cahiers de recherche 17-2013, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  10. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2012. "Least Manipulable Envy-free Rules in Economies with Indivisibilities," Working Papers 2012:8, Lund University, Department of Economics, revised 30 Sep 2013.
  11. Vito Fragnelli & Maria Erminia Marina, 2009. "Strategic Manipulations and Collusions in Knaster Procedure," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(2), pages 143-153, July.
  12. Federica Briata & Marco Dall’Aglio & Vito Fragnelli, 2012. "Dynamic Collusion and Collusion Games in Knaster’s Procedure," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 6(3), pages 199-208, October.

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