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A welfarist approach to sequencing problems with incentives

Author

Listed:
  • Banerjee, Sreoshi
  • De, Parikshit
  • Mitra, Manipushpak

Abstract

We adopt a welfarist approach to study sequencing problems in a private information setup. The ”generalized minimum welfare bound” (GMWB) is a universal representation of all the specific bounds that have been previously studied in the literature. Every agent is offered a protection in the form of a minimum guarantee on their utilities. We provide a necessary and sufficient condition to identify an outcome efficient and strategy-proof mechanism that satisfies GMWB.We then characterize the entire class of mechanisms that satisfy outcome efficiency, strategy proofness and GMWB. These are termed as the class of ”relative pivotal mechanisms”. Our paper proposes relevant theoretical applications namely; ex-ante initial order, identical costs bound and expected cost bound. We also give insights on the issues of feasibility and/or budget balance.

Suggested Citation

  • Banerjee, Sreoshi & De, Parikshit & Mitra, Manipushpak, 2020. "A welfarist approach to sequencing problems with incentives," MPRA Paper 107188, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107188
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    References listed on IDEAS

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    Cited by:

    1. Banerjee, Sreoshi & Mitra, Manipushpak, 2021. "Lorenz optimality for sequencing problems with welfare bounds," Economics Letters, Elsevier, vol. 205(C).

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    More about this item

    Keywords

    sequencing problems; generalized minimum welfare bounds; outcome efficiency; strategyproofness; feasibility; budget balance;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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