Manipulation through Bribes
We consider allocation rules that choose both a public outcome and transfers, based on the agents' reported valuations of the outcomes. Under a given allocation rule, a bribing situation exists when one agent could pay another to misreport his valuations, resulting in a net gain to both agents. A rule is bribe-proof if such opportunities never arise (including the case in which the briber and bribee are the same agent). The central result is that under a bribe-proof rule, regardless of the domain of admissible valuations, the payoff to any one agent is a continuous function of any other agent's reported valuations. We then show that on connected domains of valuation functions, if either the set of outcomes is finite or each agent's set of admissible valuations is smoothly connected, then an agent's payoff is a constant function of other agents' reported valuations. Finally, under the additional assumption of a standard richness condition on the set of admissible valuations, a bribe-proof rule must be a constant function.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
- Schummer, James, 2000. "Eliciting Preferences to Assign Positions and Compensation," Games and Economic Behavior, Elsevier, vol. 30(2), pages 293-318, February.
- Heal, G.M. & Chichilnisky, G., 1995.
"The Geometry of Implementation: A Necessary and Sufficient Condition for Straightforward Games,"
95-22, Columbia - Graduate School of Business.
- G. Chichilnisky & G. M. Heal, 1997. "The geometry of implementation: a necessary and sufficient condition for straightforward games (*)," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 14(2), pages 259-294.
- Green, Jerry & Laffont, Jean-Jacques, 1977. "Characterization of Satisfactory Mechanisms for the Revelation of Preferences for Public Goods," Econometrica, Econometric Society, vol. 45(2), pages 427-38, March.
- Cremer, Jacques, 1996. "Manipulations by Coalitions Under Asymmetric Information: The Case of Groves Mechanisms," Games and Economic Behavior, Elsevier, vol. 13(1), pages 39-73, March.
- Barbera, Salvador & Jackson, Matthew O, 1995.
Econometric Society, vol. 63(1), pages 51-87, January.
- Jerry Green & Jean-Jacques Laffont, 1979. "On Coalition Incentive Compatibility," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 243-254.
- H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
- Holmstrom, Bengt, 1979. "Groves' Scheme on Restricted Domains," Econometrica, Econometric Society, vol. 47(5), pages 1137-44, September.
When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:91:y:2000:i:2:p:180-198. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.