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(Minimally) 'epsilon'-Incentive Compatible Competitive Equilibria in Economies with Indivisibilities

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Author Info

  • ANDERSSON, Tommy
  • EHLERS, Lars
  • SVENSSON, Lars-Gunnar

Abstract

We consider competitive and budget-balanced allocation rules for problems where a number of indivisible objects and a fixed amount of money is allocated among a group of agents. In “small” economies, we identify under classical preferences each agent's maximal gain from manipulation. Using this result we find the competitive and budget-balanced allocation rules which are minimally manipulable for each preference profile in terms of any agent's maximal gain. If preferences are quasi-linear, then we can find a competitive and budget-balanced allocation rule such that for any problem, the maximal utility gain from manipulation is equalized among all agents.

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File URL: https://papyrus.bib.umontreal.ca/jspui/handle/1866/8259
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Bibliographic Info

Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2012-03.

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Length: 13 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:mtl:montde:2012-03

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Keywords: epsilon-Incentive Compatibility; Competitive Allocation; Budget-Balance; Indivis- ibilities.;

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