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Efficient and Stable Collective Choices under Crowding Preferences

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  • Jordi Massó
  • Antonio Nicolò

Abstract

We consider a set of agents who have to choose one alternative among a finite set of social alternatives. A final allocation is a pair given by the selected alternative and the group of its users. Agents have crowding preferences over allocations: between any pair of allocations with the same alternative, they prefer the allocation with the largest number of users. We require that a decision be efficient and stable (which guarantees free participation in the group of users and free exit from it). We propose a two-stage sequential mechanism whose unique subgame perfect equilibrium outcome is an efficient and stable allocation which also satisfies a maximal participation property. The social choice function implemented by the proposed mechanism is also anonymous and group stable.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 148.

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Date of creation: Nov 2004
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Handle: RePEc:bge:wpaper:148

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Keywords: Public Goods; Crowding Preferences; Subgame Perfect Implementation;

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  1. Berga, Dolors & Bergantiños, Gustavo & Massó, Jordi & Neme, Alejandro, 2003. "On Exiting after Voting," Working Papers of the Department of Economics, University of Girona 6, Department of Economics, University of Girona.
  2. M. Sanver, 2006. "Nash implementing non-monotonic social choice rules by awards," Economic Theory, Springer, vol. 28(2), pages 453-460, 06.
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