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Strategy-proof allocation mechanisms for economies with public goods


  • Diego Moreno


  • María Moscoso



We show that strategy-proof allocation mechanisms for economies with public goods are dictatorial—i.e., they always select an allocation in their range that maximizes the welfare of the same single individual (the dictator). Further, strategy-proof and efficient allocation mechanisms are strongly dictatorial—i.e., they select the dictator’s preferred allocation on the entire feasible set. Thus, our results reveal the extent to which the conflict between individual incentives and other properties that may be deemed desirable (e.g., fairness, equal treatment, distributive justice) pervades resource allocation problems. Copyright Springer-Verlag 2013

Suggested Citation

  • Diego Moreno & María Moscoso, 2013. "Strategy-proof allocation mechanisms for economies with public goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(1), pages 315-336, January.
  • Handle: RePEc:spr:joecth:v:52:y:2013:i:1:p:315-336 DOI: 10.1007/s00199-011-0627-5

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    References listed on IDEAS

    1. Walker, Mark, 1980. "On the Nonexistence of a Dominant Strategy Mechanism for Making Optimal Public Decisions," Econometrica, Econometric Society, vol. 48(6), pages 1521-1540, September.
    2. Shigehiro Serizawa, 1999. "Strategy-Proof and Symmetric Social Choice Functions for Public Good Economies," Econometrica, Econometric Society, vol. 67(1), pages 121-146, January.
    3. Shigehiro Serizawa, 1997. "Strategy-proof and individually rational social choice functions for public good economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(2), pages 379-380.
    4. James Schummer, 1999. "Strategy-proofness versus efficiency for small domains of preferences over public goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 13(3), pages 709-722.
    5. Barbera, Salvador & Jackson, Matthew O, 1995. "Strategy-Proof Exchange," Econometrica, Econometric Society, vol. 63(1), pages 51-87, January.
    6. Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
    7. Dirk Bergemann & Stephen Morris, 2009. "Robust Implementation in Direct Mechanisms," Review of Economic Studies, Oxford University Press, vol. 76(4), pages 1175-1204.
    8. Mark A. Satterthwaite & Hugo Sonnenschein, 1981. "Strategy-Proof Allocation Mechanisms at Differentiable Points," Review of Economic Studies, Oxford University Press, vol. 48(4), pages 587-597.
    9. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
    10. Saijo, Tatsuyoshi, 1991. "Incentive compatibility and individual rationality in public good economies," Journal of Economic Theory, Elsevier, vol. 55(1), pages 203-212, October.
    11. Salvador Barberà, 2010. "Strategy-proof social choice," UFAE and IAE Working Papers 828.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    12. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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    More about this item


    Allocation mechanisms; Strategy-proofness; Dictatorship; Public goods; Efficiency; D6; D7; H4; P1;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H4 - Public Economics - - Publicly Provided Goods
    • P1 - Economic Systems - - Capitalist Systems


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