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Strategy-proof exchange under trichotomous preferences

Author

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  • Manjunath, Vikram
  • Westkamp, Alexander

Abstract

We study the balanced exchange of indivisible objects without monetary transfers when agents may be endowed with (and consume) more than one object. We propose a natural domain of preferences that we call trichotomous. In this domain, each agent's preference over bundles of objects is responsive to an ordering over objects that has the following three indifference classes, in decreasing order of preferences: desirable objects, objects that she is endowed with but does not consider desirable, and objects that she neither is endowed with nor finds desirable.

Suggested Citation

  • Manjunath, Vikram & Westkamp, Alexander, 2021. "Strategy-proof exchange under trichotomous preferences," Journal of Economic Theory, Elsevier, vol. 193(C).
  • Handle: RePEc:eee:jetheo:v:193:y:2021:i:c:s0022053121000144
    DOI: 10.1016/j.jet.2021.105197
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    Cited by:

    1. Andersson, Tommy & Csehz, Ágnes & Ehlers, Lars & Erlanson, Albin, 2018. "Organizing Time Banks: Lessons from Matching Markets," Working Papers 2018:19, Lund University, Department of Economics, revised 08 Mar 2019.
    2. Di Feng & Bettina Klaus & Flip Klijn, 2022. "A Characterization of the Coordinate-Wise Top-Trading-Cycles Mechanism for Multiple-Type Housing Markets," Cahiers de Recherches Economiques du Département d'économie 22.06, Université de Lausanne, Faculté des HEC, Département d’économie.
    3. Di Feng & Bettina Klaus & Flip Klijn, 2022. "Characterizing the Coordinatewise Top-Trading-Cycles Mechanism for Multiple-Type Housing Markets," Working Papers 1341, Barcelona School of Economics.
    4. Di Feng & Bettina Klaus, 2022. "Preference revelation games and strict cores of multiple‐type housing market problems," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 61-76, March.
    5. Kominers, Scott Duke & Hatfield, John William & Nichifor, Alexandru & Ostrovsky, Michael & Westkamp, Alexander, 2021. "Chain stability in trading networks," Theoretical Economics, Econometric Society, vol. 16(1), January.
    6. Péter Biró & Flip Klijn & Szilvia Pápai, 2021. "Serial Rules in a Multi-Unit Shapley-Scarf Market," Working Papers 1255, Barcelona School of Economics.

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    More about this item

    Keywords

    Individual rationality; Pareto-efficiency; Strategy-proofness; Indivisible goods; Multi-unit demand;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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