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Individual versus group strategy proofedness: when do they coincide?

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  • Salvador Barberà
  • Dolors Berga
  • Bernardo Moreno

Abstract

A social choice function is group strategy-proof on a domain if no group of agents can manipulate its final outcome to their own benefit by declaring false preferences on that domain. Group strategy-proofness is a very attractive requirement of incentive compatibility. But in many cases it is hard or impossible to find nontrivial social choice functions satisfying even the weakest condition of individual strategy-proofness. However, there are a number of economically signicant domains where interesting rules satisfying individual strategy-proofness can be defined, and for some of them, all these rules turn out to also satisfy the stronger requirement of group strategy-proofness. This is the case, for example, when preferences are single-peaked or single-dipped. In other cases, this equivalence does not hold. We provide sufficient conditions defining domains of preferences guaranteeing that individual and group strategy-proofness are equivalent for all rules defined on these domains. Our results extend to intermediate versions of strategy-proofness, defined to exclude manipulations by small group of agents. They also provide guidelines on how to restrict the ranges of functions defined on domains that only satisfy our condition partially. Finally, we provide a partial answer regarding the necessity of our conditions.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 372.

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Date of creation: Feb 2009
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Handle: RePEc:bge:wpaper:372

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Keywords: Strategy-proofness; Group strategy-proofness; k-size strategy-proofness; Sequential inclusion; Single-peaked preferences; Single-dipped preferences; Separable preferences;

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References

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  1. Green, Jerry & Laffont, Jean-Jacques, 1979. "On Coalition Incentive Compatibility," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 243-54, April.
  2. Alejandro Saporiti, 2007. "Strategy-Proofness and Single-Crossing," Wallis Working Papers WP48, University of Rochester - Wallis Institute of Political Economy.
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  4. Dasgupta, Partha S & Hammond, Peter J & Maskin, Eric S, 1979. "The Implementation of Social Choice Rules: Some General Results on Incentive Compatibility," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 185-216, April.
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  6. Klaus, Bettina, 2001. "Coalitional Strategy-Proofness in Economies with Single-Dipped Preferences and the Assignment of an Indivisible Object," Games and Economic Behavior, Elsevier, vol. 34(1), pages 64-82, January.
  7. Schummer, James & Vohra, Rakesh V., 2002. "Strategy-proof Location on a Network," Journal of Economic Theory, Elsevier, vol. 104(2), pages 405-428, June.
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  9. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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  12. Salvador Barbera & Matthew O. Jackson, 1993. "Strategy-Proof Exchange," Discussion Papers 1021, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  13. Peleg, Bezalel, 1998. "Almost all equilibria in dominant strategies are coalition - proof," Economics Letters, Elsevier, vol. 60(2), pages 157-162, August.
  14. Le Breton, Michel & Weymark, John A., 1999. "Strategy-proof social choice with continuous separable preferences," Journal of Mathematical Economics, Elsevier, vol. 32(1), pages 47-85, August.
  15. Border, Kim C & Jordan, J S, 1983. "Straightforward Elections, Unanimity and Phantom Voters," Review of Economic Studies, Wiley Blackwell, vol. 50(1), pages 153-70, January.
  16. Salvador Barbera & Hugo Sonnenschein & Lin Zhou, 1990. "Voting by Committees," Cowles Foundation Discussion Papers 941, Cowles Foundation for Research in Economics, Yale University.
  17. Barbera, Salvador, 1979. "A Note on Group Strategy-Proof Decision Schemes," Econometrica, Econometric Society, vol. 47(3), pages 637-40, May.
  18. Sen, Amartya & Pattanaik, Prasanta K., 1969. "Necessary and sufficient conditions for rational choice under majority decision," Journal of Economic Theory, Elsevier, vol. 1(2), pages 178-202, August.
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