Strategy-Proof and Fair Wages
AbstractA fair division problem with indivisible objects, e.g. jobs, and one divisible good (money) is considered. The individuals consume one object and money. The class of strategy-proof and fair allocation rules is characterized. The allocation rules in the class are like a Vickrey auction bossy and like the Clark-Groves mechanisms in general not "budget balanced". The efficiency loss due to fairness and strategy-proofness becomes measurable in monetary terms. Two interpretations of the formal model is discussed. First, it is a situation where a given sum of money has to be distributed as wages and fair wages are to be implemented. Second, it is as an auction model where a number of objects are simultaneously traded.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2004:8.
Length: 21 pages
Date of creation: 09 Mar 2004
Date of revision:
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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
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ndivisibilities; fairness; strategy-proofness; wages; Vickrey-auction;
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