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Envy-free and budget-balanced assignment of identical objects

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  • Yan Long

    (New York University Abu Dhabi)

Abstract

Strategy-proof, budget-balanced, and envy-free rank mechanisms assign q identical objects to n agents. The efficiency loss is the largest ratio of surplus loss to efficient surplus, over all profiles of non-zero valuations. The smallest efficiency loss $$\frac{n-q}{n^{2}-n}$$ n - q n 2 - n is uniquely achieved by the following simple allocation rule: assign one object to each of the $$q-1$$ q - 1 agents with the highest valuations, a large probability to the agent with the qth highest valuation, and the remaining probability to the agent with the $$(q+1)$$ ( q + 1 ) th highest valuation.

Suggested Citation

  • Yan Long, 2018. "Envy-free and budget-balanced assignment of identical objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(4), pages 705-719, April.
    • Handle: RePEc:spr:sochwe:v:50:y:2018:i:4:d:10.1007_s00355-017-1102-4
    DOI: 10.1007/s00355-017-1102-4
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    Cited by:

    1. Yan Long, 2020. "Optimal budget-balanced ranking mechanisms to assign identical objects," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(2), pages 467-502, September.

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