We consider the problem of allocating m(m 22) infinitely divisible commodities among agentswith single-peaked preferences. In the two-agents case any strategy-proof and efficient solution isdictatorial. First, we propose a solution that, in the two-agents case, is the only one that satisfiesstrategy-proofness, no-envy and a weak requirement related to efficiency. Moreover, it isimplementable in dominant strategies and satisfies consistency properties. Second, we propose anextension of the Mas-Colell's Wairasian equilibrium with slack to characterize the efficient allocations.This new solution allow us to associate with each efficient allocation an income redistributionnecessary to obtain it. We prove that the original solution proposed by Mas-Colell is the efficientselection which requires an income redistribution with smallest range, and that it satisfies consistency properties.
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Paper provided by Valencia - Instituto de Investigaciones Economicas in its series Papers with number
98-23.
Find related papers by JEL classification: C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
References listed on IDEAS 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.:
Salvador Barbera, 1995.
"Strategy-Proof Allotment Rules,"
Discussion Papers
1142, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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