Strategy-Proof Package Assignment
AbstractWe examine the strategy-proof allocation of multiple divisible and indivisible resources; an application is the assignment of packages of tasks, workloads, and compensations among the members of an organization. We find that any allocation mechanism obtained by maximizing a separably concave function over a polyhedral extension of the set of Pareto-efficient allocations is strategy-proof. Moreover, these are the only strategy-proof and unanimous mechanisms satisfying a coherence property and responding well to changes in the availability of resources. These mechanisms generalize the parametric rationing mechanisms (Peyton Young, 1987, Mathematics of Operations Research 12 (3), 397-414.), some of which date back to the Babylonian Talmud.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2013:43.
Length: 41 pages
Date of creation: 13 Dec 2013
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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Package assignment; Indivisible objects; Strategy-proofness;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D47 - Microeconomics - - Market Structure and Pricing - - - Market Design
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- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
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