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Strategy-proof and individually rational social choice functions for public good economies

  • Shigehiro Serizawa

    (Department of Economics, Shiga University, 1-1-1, Banba, Hikone, Shiga 522, JAPAN)

This note is to inform about a mistake in my paper (Serizawa, 1996). In that paper, I characterized strategy-proof, individually rational, budget-balancing, non-exploitative and non-bossy social choice functions for economies with one public good and one private good. I established as Theorem 3 (page 507) that a social choice function is strategy-proof, individually rational with respect to endowment, budget-balancing, non-exploitative and non-bossy if and only if it is a scheme of "semi-convex cost sharing determined by the minimum demand principle". I also exposed one example (Example 2, page 507) in order to emphasize that non-bossiness is indispensable for this characterization. I claimed that the social choice function in that example satisfies the above axioms except for non-bossiness, and is not a scheme of semi-convex cost sharing. However, the social choice function in the example is actually not strategy-proof, as shown in the simple discussion below. Therefore it is an open question whether or not a similar characterization theorem holds without non-bossiness.

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Article provided by Society for the Advancement of Economic Theory (SAET) in its journal Economic Theory.

Volume (Year): 9 (1997)
Issue (Month): 2 ()
Pages: 379-380

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Handle: RePEc:spr:joecth:v:9:y:1997:i:2:p:379-380
Note: Received: July 15, 1996
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