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Group Strategyproof Cost Sharing: The Role of Indifferences

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  • Ruben Juarez

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    (Department of Economics, University of Hawaii at Manoa)

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    Abstract

    Every agent reports his willingness to pay for one unit of good. A mechanism allocates goods and cost shares to some agents. We characterize the group strategyproof (GSP) mechanisms under two alternative continuity conditions interpreted as tie-breaking rules. With the maximalist rule (MAX) an indi erent agent is always served. With the minimalist rule (MIN) an indi erent agent does not get a unit of good. GSP and MAX characterize the cross-monotonic mechanisms. These mechanisms are appropriate whenever symmetry is required. On the other hand, GSP andMIN characterize the sequential mechanisms. These mechanisms are appropriate whenever there is scarcity of the good. Our results are independent of an underlying cost function; they unify and strengthen earlier results for particular classes of cost functions.

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_12-2.pdf
    File Function: First version, 2012
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    Bibliographic Info

    Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 201202.

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    Length: 36 pages
    Date of creation: 01 Feb 2012
    Date of revision:
    Handle: RePEc:hai:wpaper:201202

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    Related research

    Keywords: Cost sharing; Mechanism design; Group strategyproof; Tie-breaking rule;

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    1. Szilvia Papai, 2000. "Strategyproof Assignment by Hierarchical Exchange," Econometrica, Econometric Society, vol. 68(6), pages 1403-1434, November.
    2. Deb, Rajat & Razzolini, Laura, 1999. "Voluntary cost sharing for an excludable public project," Mathematical Social Sciences, Elsevier, vol. 37(2), pages 123-138, March.
    3. Ruben Juarez, 2008. "The worst absolute surplus loss in the problem of commons: random priority versus average cost," Economic Theory, Springer, vol. 34(1), pages 69-84, January.
    4. Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-35, May.
    5. Moulin Herve & Shenker Scott, 1994. "Average Cost Pricing versus Serial Cost Sharing: An Axiomatic Comparison," Journal of Economic Theory, Elsevier, vol. 64(1), pages 178-201, October.
    6. Svensson, Lars-Gunnar & Larsson, Bo, 2000. "Strategy-Proof and Nonbossy Allocation of Indivisible Goods and Money," Working Papers 2000:11, Lund University, Department of Economics.
    7. Sprumont, Yves, 1990. "Population monotonic allocation schemes for cooperative games with transferable utility," Games and Economic Behavior, Elsevier, vol. 2(4), pages 378-394, December.
    8. Papai, Szilvia, 1996. "Strategyproof and Nonbossy Assignments," Working Papers 938, California Institute of Technology, Division of the Humanities and Social Sciences.
    9. Lars Ehlers & Bettina Klaus, 2003. "Coalitional strategy-proof and resource-monotonic solutions for multiple assignment problems," Social Choice and Welfare, Springer, vol. 21(2), pages 265-280, October.
    10. Ehlers, Lars, 2002. "Coalitional Strategy-Proof House Allocation," Journal of Economic Theory, Elsevier, vol. 105(2), pages 298-317, August.
    11. Mutuswami, Suresh, 2005. "Strategyproofness, Non-Bossiness and Group Strategyproofness in a cost sharing model," Economics Letters, Elsevier, vol. 89(1), pages 83-88, October.
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