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Strategy-proof allocation mechanisms for economies with public goods

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  • Diego Moreno
  • María Moscoso

Abstract

We show that strategy-proof allocation mechanisms for economies with public goods are dictatorial—i.e., they always select an allocation in their range that maximizes the welfare of the same single individual (the dictator). Further, strategy-proof and efficient allocation mechanisms are strongly dictatorial—i.e., they select the dictator’s preferred allocation on the entire feasible set. Thus, our results reveal the extent to which the conflict between individual incentives and other properties that may be deemed desirable (e.g., fairness, equal treatment, distributive justice) pervades resource allocation problems. Copyright Springer-Verlag 2013

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  • Diego Moreno & María Moscoso, 2013. "Strategy-proof allocation mechanisms for economies with public goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(1), pages 315-336, January.
    • Handle: RePEc:spr:joecth:v:52:y:2013:i:1:p:315-336
    DOI: 10.1007/s00199-011-0627-5
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    Cited by:

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    2. Mustafa Afacan, 2014. "Fictitious students creation incentives in school choice problems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(3), pages 493-514, August.
    3. Youngsub Chun & Manipushpak Mitra & Suresh Mutuswami, 2014. "Egalitarian equivalence and strategyproofness in the queueing problem," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 425-442, June.

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    More about this item

    Keywords

    Allocation mechanisms; Strategy-proofness; Dictatorship; Public goods; Efficiency; D6; D7; H4; P1;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H4 - Public Economics - - Publicly Provided Goods
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

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