Group Strategyproof Cost Sharing: The Role of Indifferences
AbstractEvery 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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Bibliographic InfoPaper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 201202.
Length: 36 pages
Date of creation: 01 Feb 2012
Date of revision:
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-28 (All new papers)
- NEP-GTH-2012-03-28 (Game Theory)
- NEP-MIC-2012-03-28 (Microeconomics)
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