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Pairwise Strategy-Proofness and Self-Enforcing Manipulation

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  • Shigehiro Serizawa

Abstract

"Strategy-proofness" is one of the axioms that are most frequently used in the recent literature on social choice theory. It requires that by misrepresenting his preferences, no agent can manipulate the outcome of the social choice rule in his favor. The stronger requirement of "group strategy-proofness" is also often employed to obtain clear characterization results of social choice rules. Group strategy-proofness requires that no group of agents can manipulate the outcome in their favors. In this paper, we advocate "effective pairwise strategy-proofness." It is the requirement that the social choice rule should be immune to unilateral manipulation and "self-enforcing" pairwise manipulation in the sense that no agent of a pair has the incentive to betray his partner. We apply the axiom of effective pairwise strategy-proofness to three types of economies: public good economy, pure exchange economy, and allotment economy. Although effective pairwise strategy-proofness is seemingly a much weaker axiom than group strategy-proofness, effective pairwise strategy-proofness characterizes social choice rules that are analyzed by using different axioms in the literature.

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Paper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0629.

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Date of creation: Feb 2005
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Handle: RePEc:dpr:wpaper:0629

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  1. Shigehiro Serizawa & John A. Weymark, 2002. "Efficient Strategy-Proof Exchange and Minimum Consumption Guarantees," Vanderbilt University Department of Economics Working Papers 0216, Vanderbilt University Department of Economics, revised Aug 2002.
  2. Maskin, Eric, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Wiley Blackwell, vol. 66(1), pages 23-38, January.
  3. Serizawa, Shigehiro, 1996. "Strategy-Proof and Individually Rational Social Choice Functions for Public Good Economies," Economic Theory, Springer, vol. 7(3), pages 501-12, April.
  4. Barbera, Salvador & Jackson, Matthew O, 1995. "Strategy-Proof Exchange," Econometrica, Econometric Society, vol. 63(1), pages 51-87, January.
  5. Serizawa, Shigehiro, 2002. "Inefficiency of Strategy-Proof Rules for Pure Exchange Economies," Journal of Economic Theory, Elsevier, vol. 106(2), pages 219-241, October.
  6. Satterthwaite, Mark A & Sonnenschein, Hugo, 1981. "Strategy-Proof Allocation Mechanisms at Differentiable Points," Review of Economic Studies, Wiley Blackwell, vol. 48(4), pages 587-97, October.
  7. Bezalel Peleg & Peter Sudhölter, 1998. "Single-Peakedness and Coalition-Proofness," Working Papers 290, Bielefeld University, Center for Mathematical Economics.
  8. James Schummer, 1996. "Strategy-proofness versus efficiency on restricted domains of exchange economies," Social Choice and Welfare, Springer, vol. 14(1), pages 47-56.
  9. Moulin, Herve, 1994. "Serial Cost-Sharing of Excludable Public Goods," Review of Economic Studies, Wiley Blackwell, vol. 61(2), pages 305-25, April.
  10. Ohseto, Shinji, 1997. "Strategy-proof mechanisms in public good economies," Mathematical Social Sciences, Elsevier, vol. 33(2), pages 157-183, April.
  11. Musgrave, R.A., 1985. "A brief history of fiscal doctrine," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 1, pages 1-59 Elsevier.
  12. Rajat Deb & Shinji Ohseto, 1999. "Strategy-proof and individually rational social choice functions for public good economies: A note," Economic Theory, Springer, vol. 14(3), pages 685-689.
  13. Lin Zhou, 1990. "Inefficiency of Strategy-Proof Allocation Mechanisms in Pure Exchange Economies," Cowles Foundation Discussion Papers 954, Cowles Foundation for Research in Economics, Yale University.
  14. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
  15. James Schummer, 1997. "Manipulation Through Bribes," Discussion Papers 1207, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  16. Shigehiro Serizawa, 1999. "Strategy-Proof and Symmetric Social Choice Functions for Public Good Economies," Econometrica, Econometric Society, vol. 67(1), pages 121-146, January.
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Cited by:
  1. Bochet, Olivier & Sakai, Toyotaka, 2010. "Secure implementation in allotment economies," Games and Economic Behavior, Elsevier, vol. 68(1), pages 35-49, January.
  2. Shuhei Morimoto & Shigehiro Serizawa & Stephen Ching, 2009. "A Characterization of the Uniform Rule with Several Commodities and Agents," ISER Discussion Paper 0769, Institute of Social and Economic Research, Osaka University.
  3. Jin Li & Jingyi Xue, 2013. "Egalitarian division under Leontief Preferences," Economic Theory, Springer, vol. 54(3), pages 597-622, November.
  4. Manipushpak Mitra & Suresh Mutuswami, 2006. "Group Strategyproofness in Queueing Models," Economics Discussion Papers 610, University of Essex, Department of Economics.
  5. Salvador Barberà & Dolors Berga & Bernardo Moreno, 2009. "Individual versus group strategy-proofness: when do they coincide?," UFAE and IAE Working Papers 761.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  6. Vito Fragnelli & Maria Erminia Marina, 2009. "Strategic Manipulations and Collusions in Knaster Procedure," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(2), pages 143-153, July.
  7. Conan Mukherjee, 2014. "Fair and group strategy-proof good allocation with money," Social Choice and Welfare, Springer, vol. 42(2), pages 289-311, February.
  8. Adachi, Tsuyoshi, 2010. "The uniform rule with several commodities: A generalization of Sprumont's characterization," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 952-964, November.
  9. De, Parikshit, 2013. "Incentive and normative analysis on sequencing problem," MPRA Paper 55127, University Library of Munich, Germany.
  10. Biung-Ghi Ju, 2004. "Coalitional Manipulation on Networks," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200410, University of Kansas, Department of Economics, revised Aug 2004.
  11. Mizukami, Hideki & Wakayama, Takuma, 2009. "The relation between non-bossiness and monotonicity," Mathematical Social Sciences, Elsevier, vol. 58(2), pages 256-264, September.
  12. Salvador Barberà, 2010. "Strategy-proof social choice," UFAE and IAE Working Papers 828.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  13. Sato, Shin, 2013. "A sufficient condition for the equivalence of strategy-proofness and nonmanipulability by preferences adjacent to the sincere one," Journal of Economic Theory, Elsevier, vol. 148(1), pages 259-278.

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