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Constrained-optimal strategy-proof assignment: Beyond the Groves mechanisms

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  • Sprumont, Yves

Abstract

A single valuable object must be allocated to at most one of n agents. Monetary transfers are possible and preferences are quasilinear. We offer an explicit description of the individually rational mechanisms which are Pareto-optimal in the class of feasible, strategy-proof, anonymous and envy-free mechanisms. These mechanisms form a one-parameter infinite family; the Vickrey mechanism is the only Groves mechanism in that family.

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  • Sprumont, Yves, 2013. "Constrained-optimal strategy-proof assignment: Beyond the Groves mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 1102-1121.
    • Handle: RePEc:eee:jetheo:v:148:y:2013:i:3:p:1102-1121
    DOI: 10.1016/j.jet.2012.09.015
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    2. Paula Jaramillo & Çaǧatay Kayı & Flip Klijn, 2014. "Asymmetrically fair rules for an indivisible good problem with a budget constraint," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(3), pages 603-633, October.
    3. Tommy Andersson & Lars Ehlers & Lars-Gunnar Svensson & Ryan Tierney, 2022. "Gale’s Fixed Tax for Exchanging Houses," Mathematics of Operations Research, INFORMS, vol. 47(4), pages 3110-3128, November.
    4. Sarvesh Bandhu & Ratul Lahkar, 2022. "A Large Population Approach to Implementing Efficiency with Minimum Inequality," Working Papers 76, Ashoka University, Department of Economics.
    5. Tomoya Kazumura & Shigehiro Serizawa, 2016. "Efficiency and strategy-proofness in object assignment problems with multi-demand preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 633-663, October.
    6. Conan Mukherjee, 2020. "On group strategyproof and optimal object allocation," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 289-304, October.
    7. Moritz Drexl & Andreas Kleiner, 2018. "Why Voting? A Welfare Analysis," American Economic Journal: Microeconomics, American Economic Association, vol. 10(3), pages 253-271, August.
    8. Jordi Massó & Antonio Nicoloó & Tridib Sharma & Levent Ülkü, 2013. "On Equal Cost Sharing in the Provision of an Excludable Public Good," Working Papers 1306, Centro de Investigacion Economica, ITAM.
    9. Yan Long, 2018. "Envy-free and budget-balanced assignment of identical objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(4), pages 705-719, April.
    10. Efthymios Athanasiou & Giacomo Valletta, 2021. "Undominated mechanisms and the provision of a pure public good in two agent economies," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(4), pages 763-795, November.
    11. Long, Yan & Mishra, Debasis & Sharma, Tridib, 2017. "Balanced ranking mechanisms," Games and Economic Behavior, Elsevier, vol. 105(C), pages 9-39.
    12. Alva, Samson & Manjunath, Vikram, 2019. "Strategy-proof Pareto-improvement," Journal of Economic Theory, Elsevier, vol. 181(C), pages 121-142.
    13. Athanasiou, Efthymios & Valletta, Giacomo, 2021. "Binary public decisions and undominated mechanisms," Journal of Economic Theory, Elsevier, vol. 198(C).
    14. Efthymios Athanasiou & Santanu Dey & Giacomo Valletta, 2016. "Groves mechanisms and communication externalities," Review of Economic Design, Springer;Society for Economic Design, vol. 20(1), pages 1-37, March.
    15. Mukherjee, Conan, 2015. "On Axioms Underlying Use of Reserve Price," Working Papers 2015:7, Lund University, Department of Economics, revised 14 Apr 2015.
    16. Kazuhiko Hashimoto, 2015. "Strategy-Proof Rule in Probabilistic Allocation Problem of an Indivisible Good and Money," ISER Discussion Paper 0931, Institute of Social and Economic Research, Osaka University.
    17. Massó, Jordi & Nicolò, Antonio & Sen, Arunava & Sharma, Tridib & Ülkü, Levent, 2015. "On cost sharing in the provision of a binary and excludable public good," Journal of Economic Theory, Elsevier, vol. 155(C), pages 30-49.
    18. Drexl, Moritz & Kleiner, Andreas, 2015. "Optimal private good allocation: The case for a balanced budget," Games and Economic Behavior, Elsevier, vol. 94(C), pages 169-181.
    19. Andrew Mackenzie, 2020. "An axiomatic analysis of the papal conclave," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(3), pages 713-743, April.
    20. Kazumura, Tomoya & Mishra, Debasis & Serizawa, Shigehiro, 2020. "Strategy-proof multi-object mechanism design: Ex-post revenue maximization with non-quasilinear preferences," Journal of Economic Theory, Elsevier, vol. 188(C).
    21. Mackenzie, Andrew, 2018. "A Game of the Throne of Saint Peter," Research Memorandum 015, Maastricht University, Graduate School of Business and Economics (GSBE).
    22. Shinji Ohseto, 2021. "Strategy-proof and Pareto efficient allocation of indivisible goods: general impossibility domains," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(2), pages 419-432, June.
    23. Miki Kato & Shinji Ohseto & Shohei Tamura, 2015. "Strategy-proofness versus symmetry in economies with an indivisible good and money," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 195-207, February.
    24. Athanasiou, Efthymios, 2013. "A Solomonic solution to the problem of assigning a private indivisible good," Games and Economic Behavior, Elsevier, vol. 82(C), pages 369-387.

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    More about this item

    Keywords

    Assignment; Strategy-proof mechanisms; Groves mechanisms; Constrained optimality; No envy;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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