Preference Revelation Games and Strong Cores of Allocation Problems with Indivisibilities
AbstractThis paper studies the incentive compatibility of solutions to generalized indivisible good allocation problems introduced by Sonmez (1999), which contain the well-known marriage problems (Gale and Shapley, 1962) and the housing markets (Shapley and Scarf, 1974) as special cases. In particular, I consider the vulnerability to manipulation of solutions that are individually rational and Pareto optimal. By the results of Sonmez (1999) and Takamiya (2003), any individually rational and Pareto optimal solution is strategy-proof if and only if the strong core correspondence is essentially single-valued, and the solution is a strong core selection. Given this fact, this paper examines the equilibrium outcomes of the preference revelation games when the strong core correspondence is not necessarily essentially single-valued. I show that for the preference revelation games induced by any solution which is individually rational and Pareto optimal, the set of strict strong Nash equilibrium outcomes coincides with the strong core. This generalizes one of the results by Shin and Suh (1996) obtained in the context of the marriage probelms. Further, I examine the other preceding results proved for the marriage problems (Alcalde, 1996; Shin and Suh, 1996; Sonmez, 1997) to find that none of those results are generalized to the general model.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0651.
Date of creation: Mar 2006
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- JosÃ© Alcalde, 1995.
"Implementation of Stable Solutions to Marriage Problems,"
Working Papers. Serie AD, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie)
1995-05, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie).
- Alcalde, Jose, 1996. "Implementation of Stable Solutions to Marriage Problems," Journal of Economic Theory, Elsevier, vol. 69(1), pages 240-254, April.
- Thomson, William, 1988. "The Manipulability of the Shapley-Value," International Journal of Game Theory, Springer, Springer, vol. 17(2), pages 101-27.
- Shin, Sungwhee & Suh, Sang-Chul, 1996. "A mechanism implementing the stable rule in marriage problems," Economics Letters, Elsevier, vol. 51(2), pages 185-189, May.
- Thomson, William, 1984. "The Manipulability of Resource Allocation Mechanisms," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 51(3), pages 447-60, July.
- Roth,Alvin E. & Sotomayor,Marilda A. Oliveira, 1992.
Cambridge University Press, number 9780521437882, 9.
- Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, Elsevier, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
- Ehud Kalai, 1978.
"A Group Incentive Compatible Mechanism Yielding Core Allocation,"
Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science
329, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Kalai, Ehud & Postlewaite, Andrew & Roberts, John, 1979. "A group incentive compatible mechanism yielding core allocations," Journal of Economic Theory, Elsevier, vol. 20(1), pages 13-22, February.
- Tayfun Sonmez, 1999. "Strategy-Proofness and Essentially Single-Valued Cores," Econometrica, Econometric Society, Econometric Society, vol. 67(3), pages 677-690, May.
- Koji Takamiya, 2003. "On strategy-proofness and essentially single-valued cores: A converse result," Social Choice and Welfare, Springer, Springer, vol. 20(1), pages 77-83.
- Roth, Alvin E. & Postlewaite, Andrew, 1977. "Weak versus strong domination in a market with indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 4(2), pages 131-137, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fumiko Matsumoto).
If references are entirely missing, you can add them using this form.