IDEAS home Printed from https://ideas.repec.org/p/hhs/lunewp/2004_008.html
   My bibliography  Save this paper

Strategy-Proof and Fair Wages

Author

Listed:

Abstract

A 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.

Suggested Citation

  • Svensson, Lars-Gunnar, 2004. "Strategy-Proof and Fair Wages," Working Papers 2004:8, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2004_008
    as

    Download full text from publisher

    File URL: http://project.nek.lu.se/publications/workpap/Papers/WP04_8.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lars-Gunnar Svensson & Bo Larsson, 2002. "Strategy-proof and nonbossy allocation of indivisible goods and money," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 20(3), pages 483-502.
    2. Crawford, Vincent P & Knoer, Elsie Marie, 1981. "Job Matching with Heterogeneous Firms and Workers," Econometrica, Econometric Society, vol. 49(2), pages 437-450, March.
    3. Demange, Gabrielle & Gale, David, 1985. "The Strategy Structure of Two-sided Matching Markets," Econometrica, Econometric Society, vol. 53(4), pages 873-888, July.
    4. Sun, Ning & Yang, Zaifu, 2003. "A general strategy proof fair allocation mechanism," Economics Letters, Elsevier, vol. 81(1), pages 73-79, October.
    5. Lars-Gunnar Svensson, 1999. "Strategy-proof allocation of indivisible goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 16(4), pages 557-567.
    6. Svensson, Lars-Gunnar, 1983. "Large Indivisibles: An Analysis with Respect to Price Equilibrium and Fairness," Econometrica, Econometric Society, vol. 51(4), pages 939-954, July.
    7. Tjalling C. Koopmans & Martin J. Beckmann, 1955. "Assignment Problems and the Location of Economic Activities," Cowles Foundation Discussion Papers 4, Cowles Foundation for Research in Economics, Yale University.
    8. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
    9. Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
    10. Varian, Hal R., 1974. "Equity, envy, and efficiency," Journal of Economic Theory, Elsevier, vol. 9(1), pages 63-91, September.
    11. Eric S. Maskin, 1987. "On the Fair Allocation of Indivisible Goods," Palgrave Macmillan Books, in: George R. Feiwel (ed.), Arrow and the Foundations of the Theory of Economic Policy, chapter 11, pages 341-349, Palgrave Macmillan.
    12. Schummer, James, 2000. "Eliciting Preferences to Assign Positions and Compensation," Games and Economic Behavior, Elsevier, vol. 30(2), pages 293-318, February.
    13. Mark A. Satterthwaite & Hugo Sonnenschein, 1981. "Strategy-Proof Allocation Mechanisms at Differentiable Points," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 587-597.
    14. Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-1039, July.
    15. Miyagawa, Eiichi, 2001. "House Allocation with Transfers," Journal of Economic Theory, Elsevier, vol. 100(2), pages 329-355, October.
    16. Hylland, Aanund & Zeckhauser, Richard, 1979. "The Efficient Allocation of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 293-314, April.
    17. Ma, Jinpeng, 1994. "Strategy-Proofness and the Strict Core in a Market with Indivisibilities," International Journal of Game Theory, Springer;Game Theory Society, vol. 23(1), pages 75-83.
    18. Svensson, Lars-Gunnar, 1991. "Nash Implementation of Competitive Equilibria in a Model with Indivisible Goods," Econometrica, Econometric Society, vol. 59(3), pages 869-877, May.
    19. Leonard, Herman B, 1983. "Elicitation of Honest Preferences for the Assignment of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 461-479, June.
    20. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
    21. Martine Quinzii, 1982. "Core and Competitive Equilibria with Indivisibilities," Cowles Foundation Discussion Papers 644, Cowles Foundation for Research in Economics, Yale University.
    22. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andersson, Tommy & Svensson, Lars-Gunnar, 2018. "Strategy-Proof Allocation of Objects: A Characterization Result," Working Papers 2018:21, Lund University, Department of Economics, revised 10 May 2023.
    2. Tommy Andersson & Lars-Gunnar Svensson, 2008. "Weakly fair allocations and strategy-proofness," Review of Economic Design, Springer;Society for Economic Design, vol. 11(4), pages 321-338, February.
    3. Sprumont, Yves, 2013. "Constrained-optimal strategy-proof assignment: Beyond the Groves mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 1102-1121.
    4. Andersson, Tommy, 2007. "An algorithm for identifying fair and optimal allocations," Economics Letters, Elsevier, vol. 96(3), pages 337-342, September.
    5. Benedict Dellaert & Vladislav Golounov & Jaideep Prabhu, 2005. "The Impact of Price Disclosure on Dynamic Shopping Decisions," Marketing Letters, Springer, vol. 16(1), pages 37-52, January.
    6. , & ,, 2015. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society, vol. 10(2), May.
    7. Yan Long, 2018. "Envy-free and budget-balanced assignment of identical objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(4), pages 705-719, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lars-Gunnar Svensson, 2009. "Coalitional strategy-proofness and fairness," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(2), pages 227-245, August.
    2. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2016. "Transferring ownership of public housing to existing tenants: A market design approach," Journal of Economic Theory, Elsevier, vol. 165(C), pages 643-671.
    3. Schummer, James, 2000. "Eliciting Preferences to Assign Positions and Compensation," Games and Economic Behavior, Elsevier, vol. 30(2), pages 293-318, February.
    4. Tommy ANDERSSON & Lars EHLERS & Lars-Gunnar SVENSSON, 2014. "Transferring Ownership of Public Housing to Existing Tenants : A Mechanism Design Approach," Cahiers de recherche 09-2014, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    5. Miyagawa, Eiichi, 2001. "House Allocation with Transfers," Journal of Economic Theory, Elsevier, vol. 100(2), pages 329-355, October.
    6. ANDERSSON, Tommy & EHLERS, Lars & LARS-GUNNAR, Svensson, 2014. "Transferring ownership of public housing to existing tenants: a mechanism design," Cahiers de recherche 2014-05, Universite de Montreal, Departement de sciences economiques.
    7. Ohseto, Shinji, 2005. "Strategy-proof assignment with fair compensation," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 215-226, September.
    8. , & ,, 2015. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society, vol. 10(2), May.
    9. Yuji Fujinaka & Takuma Wakayama, 2011. "Secure implementation in Shapley–Scarf housing markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 48(1), pages 147-169, September.
    10. Tierney, Ryan, 2019. "The problem of multiple commons: A market design approach," Games and Economic Behavior, Elsevier, vol. 114(C), pages 1-27.
    11. Bochet, Olivier & Sakai, Toyotaka, 2007. "Strategic manipulations of multi-valued solutions in economies with indivisibilities," Mathematical Social Sciences, Elsevier, vol. 53(1), pages 53-68, January.
    12. Duygu Yengin, 2017. "No-envy and egalitarian-equivalence under multi-object-demand for heterogeneous objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 81-108, January.
    13. Tommy Andersson & Lars-Gunnar Svensson, 2008. "Weakly fair allocations and strategy-proofness," Review of Economic Design, Springer;Society for Economic Design, vol. 11(4), pages 321-338, February.
    14. , & , & ,, 2014. "Budget-balance, fairness and minimal manipulability," Theoretical Economics, Econometric Society, vol. 9(3), September.
    15. Marek Pycia & M. Utku Ünver, 2022. "Outside options in neutral allocation of discrete resources," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 581-604, December.
    16. Madhav Raghavan, 2018. "Influence in Private-Good Economies," Cahiers de Recherches Economiques du Département d'économie 18.05, Université de Lausanne, Faculté des HEC, Département d’économie.
    17. Hideki Mizukami & Takuma Wakayama, 2005. "Relationships between Non-Bossiness and Nash Implementability," Discussion Papers in Economics and Business 05-33, Osaka University, Graduate School of Economics.
    18. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson & Ryan Tierney, 2022. "Gale’s Fixed Tax for Exchanging Houses," Mathematics of Operations Research, INFORMS, vol. 47(4), pages 3110-3128, November.
    19. Takamiya, Koji, 2001. "Coalition strategy-proofness and monotonicity in Shapley-Scarf housing markets," Mathematical Social Sciences, Elsevier, vol. 41(2), pages 201-213, March.
    20. Tommy Andersson & Christer Andersson, 2009. "Solving House Allocation Problems with Risk-Averse Agents," Computational Economics, Springer;Society for Computational Economics, vol. 33(4), pages 389-401, May.

    More about this item

    Keywords

    ndivisibilities; fairness; strategy-proofness; wages; Vickrey-auction;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lunewp:2004_008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prakriti Thami (email available below). General contact details of provider: https://edirc.repec.org/data/delunse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.