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Second-best efficiency of allocation rules: strategy-proofness and single-peaked preferences with multiple commodities

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  • Hidekazu Anno

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  • Hiroo Sasaki

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Abstract

We study strategy-proof allocation rules in economies with perfectly divisible multiple commodities and single-peaked preferences. In this setup, it is known that the incompatibility among strategy-proofness, Pareto efficiency and non-dictatorship arises in contrast with the Sprumont (Econometrica 59:509–519, 1991 ) one commodity model. We first investigate the existence problem of strategy-proof and second-best efficient rules, where a strategy-proof rule is second-best efficient if it is not Pareto-dominated by any other strategy-proof rules. We show that there exists an egalitarian rational (consequently, non-dictatorial) strategy-proof rule satisfying second-best efficiency. Second, we give a new characterization of the generalized uniform rule with the second-best efficiency in two-agent case. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Hidekazu Anno & Hiroo Sasaki, 2013. "Second-best efficiency of allocation rules: strategy-proofness and single-peaked preferences with multiple commodities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 693-716, November.
  • Handle: RePEc:spr:joecth:v:54:y:2013:i:3:p:693-716 DOI: 10.1007/s00199-012-0732-0
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    References listed on IDEAS

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    1. Klaus, Bettina, 2008. "The coordinate-wise core for multiple-type housing markets is second-best incentive compatible," Journal of Mathematical Economics, Elsevier, vol. 44(9-10), pages 919-924, September.
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    Cited by:

    1. Anno, Hidekazu & Kurino, Morimitsu, 2016. "On the operation of multiple matching markets," Games and Economic Behavior, Elsevier, vol. 100(C), pages 166-185.

    More about this item

    Keywords

    Strategy-proofness; Single-peaked preference; Second-best efficiency; Generalized uniform rule; D63; D71; D78;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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