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Sincere and sophisticated players in an equal-income market

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  • Velez, Rodrigo A.

Abstract

We study the simultaneous direct revelation mechanism associated with each equal-income competitive social choice function in the allocation of objects and money among sincere and strategic agents. Strategic agents take advantage of sincere agents. They non-cooperatively coordinate on the equal-income competitive allocations for the true preferences that are Pareto undominated for them within the set of equal-income competitive allocations. Sincere agents are protected to some extent, however. Their welfare is usually above their maximin payoff.

Suggested Citation

  • Velez, Rodrigo A., 2015. "Sincere and sophisticated players in an equal-income market," Journal of Economic Theory, Elsevier, vol. 157(C), pages 1114-1129.
    • Handle: RePEc:eee:jetheo:v:157:y:2015:i:c:p:1114-1129
    DOI: 10.1016/j.jet.2015.03.006
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    Cited by:

    1. Rodrigo A. Velez, 2017. "Equitable rent division," Working Papers 20170818-001, Texas A&M University, Department of Economics.
    2. Rodrigo A. Velez, 2022. "A polynomial algorithm for maxmin and minmax envy-free rent division on a soft budget," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(1), pages 93-118, July.
    3. Velez, Rodrigo A., 2023. "Equitable rent division on a soft budget," Games and Economic Behavior, Elsevier, vol. 139(C), pages 1-14.
    4. Nicolò, Antonio & Velez, Rodrigo A., 2017. "Divide and compromise," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 100-110.
    5. Brown, Alexander L. & Velez, Rodrigo A., 2016. "The costs and benefits of symmetry in common-ownership allocation problems," Games and Economic Behavior, Elsevier, vol. 96(C), pages 115-131.
    6. Fujinaka, Yuji & Wakayama, Takuma, 2015. "Maximal manipulation of envy-free solutions in economies with indivisible goods and money," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 165-185.
    7. Rodrigo A. Velez, 2019. "Expressive mechanisms for equitable rent division on a budget," Papers 1902.02935, arXiv.org, revised Apr 2020.

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    More about this item

    Keywords

    Equal-income competitive social choice functions; Sincere and sophisticated agents; Indivisible goods; Bounded rationality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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