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On the location of public bads: strategy-proofness under two-dimensional single-dipped preferences

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Author Info

  • Öztürk Murat
  • Peters Hans
  • Storcken Ton

    (METEOR)

Abstract

In a model with finitely many agents who have single-dipped Euclidean preferences on a polytope inthe Euclidean plane, a rule assigns to each profile of reported dips a point of the polytope. Asingle-best point is a point which is the unique point at maximal distance from some other pointof the polytope. It is proved that any strategy-proof and Pareto optimal rule is a dictatorshipunless the polytope has exactly two single-best points or it has exactly four single-best pointswhich form the vertices of a rectangle. In the latter cases strategy-proof and Pareto optimalrules can be obtained by committee voting (simple games) between the single-best alternatives.This framework models situations where public bads such as garbage dumping grounds or nuclearplants have to be located within a confined region.

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Bibliographic Info

Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 041.

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Date of creation: 2012
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Handle: RePEc:unm:umamet:2012041

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Keywords: public economics ;

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References

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  1. Lars Ehlers, 2002. "Probabilistic allocation rules and single-dipped preferences," Social Choice and Welfare, Springer, vol. 19(2), pages 325-348.
  2. Salvador Barberà & Dolors Berga & Bernardo Moreno, 2012. "Domains, ranges and strategy-proofness: the case of single-dipped preferences," Social Choice and Welfare, Springer, vol. 39(2), pages 335-352, July.
  3. Öztürk Murat & Peters Hans & Storcken Ton, 2012. "Strategy-proof location of a public bad on a disc," Research Memorandum 042, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  4. KIRMAN, Alan P. & SONDERMANN, Dieter, . "Arrow's theorem, many agents, and indivisible dictators," CORE Discussion Papers RP -118, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Klaus, Bettina & Peters, Hans & Storcken, Ton, 1997. "Strategy-proof division of a private good when preferences are single-dipped," Economics Letters, Elsevier, vol. 55(3), pages 339-346, September.
  6. Denis Lescop, 2007. "Optimal mechanisms for siting noxious facilities," Review of Economic Design, Springer, vol. 10(4), pages 273-284, March.
  7. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
  8. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
  9. Kunreuther, Howard & Kleindorfer, Paul R, 1986. "A Sealed-Bid Auction Mechanism for Siting Noxious Facilities," American Economic Review, American Economic Association, vol. 76(2), pages 295-99, May.
  10. Berliant, Marcus & Peng, Shin-Kun & Wang, Ping, 2013. "Taxing Pollution: Agglomeration and Welfare Consequences," MPRA Paper 45520, University Library of Munich, Germany.
  11. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer, vol. 50(2), pages 499-521, June.
  12. Bengt Hansson, 1976. "The existence of group preference functions," Public Choice, Springer, vol. 28(1), pages 89-98, December.
  13. Martin Besfamille & Jean-Marie Lozachmeur, 2008. "NIMBY and mechanism design under different constitutional constraints," Department of Economics Working Papers 2008-11, Universidad Torcuato Di Tella.
  14. Border, Kim C & Jordan, J S, 1983. "Straightforward Elections, Unanimity and Phantom Voters," Review of Economic Studies, Wiley Blackwell, vol. 50(1), pages 153-70, January.
  15. Klaus, Bettina, 2001. "Coalitional Strategy-Proofness in Economies with Single-Dipped Preferences and the Assignment of an Indivisible Object," Games and Economic Behavior, Elsevier, vol. 34(1), pages 64-82, January.
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Cited by:
  1. Öztürk, Murat & Peters, Hans & Storcken, Ton, 2013. "Strategy-proof location of a public bad on a disc," Economics Letters, Elsevier, vol. 119(1), pages 14-16.
  2. Bossert W. & Peters H.J.M., 2013. "Single-basined choice," Research Memorandum 030, Maastricht University, Graduate School of Business and Economics (GSBE).

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