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The structure of (local) ordinal Bayesian incentive compatible random rules

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  • Karmokar, Madhuparna
  • Roy, Souvik

Abstract

We explore the structure of local ordinal Bayesian incentive compatible (LOBIC) random Bayesian rules (RBRs). We show that under lower contour monotonicity, almost all (with Lebesgue measure 1) LOBIC RBRs are local dominant strategy incentive compatible (LDSIC). We also provide conditions on domains so that unanimity implies lower contour monotonicity for almost all LOBIC RBRs. We provide sufficient conditions on a domain so that almost all unanimous RBRs on it (i) are Pareto optimal, (ii) are tops-only, and (iii) are only-topset. Finally, we provide a wide range of applications of our results on the unrestricted, single-peaked (on graphs), hybrid, multiple single-peaked, single-dipped, single-crossing, multidimensional separable, lexicographic, and domains under partitioning. We additionally establish the marginal decomposability property for both random social choice functions and almost all RBRs on multi-dimensional domains, and thereby generalize Breton and Sen (1999). Since OBIC implies LOBIC by definition, all our results hold for OBIC RBRs.

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  • Karmokar, Madhuparna & Roy, Souvik, 2020. "The structure of (local) ordinal Bayesian incentive compatible random rules," MPRA Paper 103494, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:103494
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    References listed on IDEAS

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    1. Roy, Souvik & Sadhukhan, Soumyarup, 2021. "A unified characterization of the randomized strategy-proof rules," Journal of Economic Theory, Elsevier, vol. 197(C).
    2. d’ASPREMONT, C. & PELEG, B., 1986. "Ordinal Bayesian incentive compatible representations of committees," LIDAM Discussion Papers CORE 1986042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Mishra, Debasis & Roy, Souvik, 2012. "Strategy-proof partitioning," Games and Economic Behavior, Elsevier, vol. 76(1), pages 285-300.
    4. Michel Le Breton & Arunava Sen, 1999. "Separable Preferences, Strategyproofness, and Decomposability," Econometrica, Econometric Society, vol. 67(3), pages 605-628, May.
    5. Peters, Hans & Roy, Souvik & Sadhukhan, Soumyarup & Storcken, Ton, 2017. "An extreme point characterization of strategy-proof and unanimous probabilistic rules over binary restricted domains," Journal of Mathematical Economics, Elsevier, vol. 69(C), pages 84-90.
    6. Mishra, Debasis, 2016. "Ordinal Bayesian incentive compatibility in restricted domains," Journal of Economic Theory, Elsevier, vol. 163(C), pages 925-954.
    7. Reffgen, Alexander, 2015. "Strategy-proof social choice on multiple and multi-dimensional single-peaked domains," Journal of Economic Theory, Elsevier, vol. 157(C), pages 349-383.
    8. Peters, Hans & Roy, Souvik & Sen, Arunava & Storcken, Ton, 2014. "Probabilistic strategy-proof rules over single-peaked domains," Journal of Mathematical Economics, Elsevier, vol. 52(C), pages 123-127.
    9. Dipjyoti Majumdar & Arunava Sen, 2004. "Ordinally Bayesian Incentive Compatible Voting Rules," Econometrica, Econometric Society, vol. 72(2), pages 523-540, March.
    10. Shin Sato, 2013. "Strategy-proofness and the reluctance to make large lies: the case of weak orders," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(2), pages 479-494, February.
    11. ,, 2009. "Strategy-proofness and single-crossing," Theoretical Economics, Econometric Society, vol. 4(2), June.
    12. Cho, Wonki Jo, 2016. "Incentive properties for ordinal mechanisms," Games and Economic Behavior, Elsevier, vol. 95(C), pages 168-177.
    13. Gibbard, Allan, 1977. "Manipulation of Schemes That Mix Voting with Chance," Econometrica, Econometric Society, vol. 45(3), pages 665-681, April.
    14. Gabriel Carroll, 2012. "When Are Local Incentive Constraints Sufficient?," Econometrica, Econometric Society, vol. 80(2), pages 661-686, March.
    15. Chatterji, Shurojit & Roy, Souvik & Sadhukhan, Soumyarup & Sen, Arunava & Zeng, Huaxia, 2020. "Restricted Probabilistic Fixed Ballot Rules and Hybrid Domains," Economics and Statistics Working Papers 3-2020, Singapore Management University, School of Economics.
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    Cited by:

    1. Majumdar, Dipjyoti & Roy, Souvik, 2021. "Ordinally Bayesian incentive compatible probabilistic voting rules," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 11-27.
    2. Miho Hong & Semin Kim, 2023. "Unanimity and local incentive compatibility in sparsely connected domains," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(2), pages 385-411, August.

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    More about this item

    Keywords

    random Bayesian rules; random social choice functions; (local) ordinal Bayesian incentive compatibility; (local) dominant strategy incentive compatibility;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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