Collective Choice under Dichotomous Preferences
AbstractAgents partition deterministic outcomes into good or bad. A direct revelation mechanism selects a lottery over outcomes - also interpreted as time-shares. Under such dichotomous preferences, the probability that the lottery outcome be a good one is a canonical utility representation. The utilitarian mechanism averages over all deterministic outcomes "approved" by the largest number of agents. It is efficient, strategy-proof and treats equally agents and outcomes. We reach the impossibility frontier if we also place the lower bound 1/n on each agent's utility, where n is the number of agents; or if this lower bound is the fraction of good outcomes to feasible outcomes. We conjecture that no ex-ante efficient and strategy-proof mechanism guarantees a strictly positive utility to all agents at all profiles, and prove a weaker version of this conjecture.
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Bibliographic InfoPaper provided by Rice University, Department of Economics in its series Working Papers with number 2003-09.
Date of creation: Aug 2003
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- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
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