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Strategy-proofness versus symmetry in economies with an indivisible good and money

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  • Miki Kato
  • Shinji Ohseto
  • Shohei Tamura

Abstract

We consider the problem of allocating a single indivisible good among $$n$$ n agents when monetary transfers are allowed. We study the possibility of constructing strategy-proof, symmetric, and budget balanced mechanisms. We show that there is no strategy-proof, symmetric, and budget balanced mechanism (under the weak domain condition that the set of agent’s possible valuations includes at least $$n+1$$ n + 1 common valuations). Moreover, this result implies that there is no strategy-proof, symmetric, and budget balanced mechanism (i) in the model where agents may have non-quasilinear preferences, and/or (ii) in the unit-demand model with $$n$$ n heterogeneous indivisible goods. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Miki Kato & Shinji Ohseto & Shohei Tamura, 2015. "Strategy-proofness versus symmetry in economies with an indivisible good and money," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 195-207, February.
    • Handle: RePEc:spr:jogath:v:44:y:2015:i:1:p:195-207
    DOI: 10.1007/s00182-014-0425-y
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    2. Kazuhiko Hashimoto, 2015. "Strategy-Proof Rule in Probabilistic Allocation Problem of an Indivisible Good and Money," ISER Discussion Paper 0931, Institute of Social and Economic Research, Osaka University.
    3. Kazuhiko Hashimoto & Yu Nakayama, 2016. "Strategy-Proofness on Bankruptcy Problems with an Indivisible Object," ISER Discussion Paper 0961, Institute of Social and Economic Research, Osaka University.
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    5. Kerber, Manfred & Lange, Christoph & Rowat, Colin, 2016. "An introduction to mechanized reasoning," Journal of Mathematical Economics, Elsevier, vol. 66(C), pages 26-39.

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    More about this item

    Keywords

    Strategy-proofness; Symmetry; Budget balance; Indivisible good; Monetary transfer; C72; D63; D71; D82;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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