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Asymmetrically Fair Rules for an Indivisible Good Problem with a Budget Constraint

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  • Paula Jaramillo

Abstract

We study a particular restitution problem where there is an indivisible good (land or property) over which two agents have rights: the dispossessed agent and the owner. A third party, possibly the government, seeks to resolve the situation by assigning rights to one and compensate the other. There is also a maximum amount of money available for the compensation. We characterize a family of asymmetrically fair rules that are immune to strategic behavior, guarantee minimal welfare levels for the agents, and satisfy the budget constraint.

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Bibliographic Info

Paper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 009425.

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Date of creation: 13 Mar 2012
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Handle: RePEc:col:000089:009425

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Keywords: fairness; strategy-proofness; indivisible good; land restitution;

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  1. Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-39, July.
  2. Tommy Andersson & Lars-Gunnar Svensson, 2008. "Weakly fair allocations and strategy-proofness," Review of Economic Design, Springer, vol. 11(4), pages 321-338, February.
  3. Svensson, Lars-Gunnar, 2006. "Coalition Strategy-Proofness and Fairness," Working Papers 2006:10, Lund University, Department of Economics.
  4. Nisan,Noam & Roughgarden,Tim & Tardos,Eva & Vazirani,Vijay V. (ed.), 2007. "Algorithmic Game Theory," Cambridge Books, Cambridge University Press, number 9780521872829, April.
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  7. Sun, Ning & Yang, Zaifu, 2003. "A general strategy proof fair allocation mechanism," Economics Letters, Elsevier, vol. 81(1), pages 73-79, October.
  8. Shinji Ohseto, 2006. "Characterizations of strategy-proof and fair mechanisms for allocating indivisible goods," Economic Theory, Springer, vol. 29(1), pages 111-121, September.
  9. Andersson, Tommy & Svensson, Lars-Gunnar, 2008. "Non-manipulable assignment of individuals to positions revisited," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 350-354, November.
  10. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
  11. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson, 2012. "(Minimally) ?-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 04-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  12. Sprumont, Yves, 2013. "Constrained-optimal strategy-proof assignment: Beyond the Groves mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 1102-1121.
  13. Green, Jerry & Laffont, Jean-Jacques, 1977. "Characterization of Satisfactory Mechanisms for the Revelation of Preferences for Public Goods," Econometrica, Econometric Society, vol. 45(2), pages 427-38, March.
  14. Ning Sun & Zaifu Yang, 2003. "A General Strategy Proof Fair Allocation Mechanism," Working Papers 346, Bielefeld University, Center for Mathematical Economics.
  15. Svensson, Lars-Gunnar, 1983. "Large Indivisibles: An Analysis with Respect to Price Equilibrium and Fairness," Econometrica, Econometric Society, vol. 51(4), pages 939-54, July.
  16. Andersson, T. & Svensson, L.-G. & Yang, Z., 2010. "Constrainedly fair job assignments under minimum wages," Games and Economic Behavior, Elsevier, vol. 68(2), pages 428-442, March.
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Cited by:
  1. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2012. "Least Manipulable Envy-free Rules in Economies with Indivisibilities," Working Papers 2012:8, Lund University, Department of Economics, revised 30 Sep 2013.
  2. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson, 2012. "(Minimally) ?-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities," Cahiers de recherche 04-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  3. Arias María Alejandra & Ibáñez Ana María & Querubin Pablo, 2014. "The Desire to Return during Civil War: Evidence for Internally Displaced Populations in Colombia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(1), pages 209-233, January.

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