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A general impossibility theorem on Pareto efficiency and Bayesian incentive compatibility

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  • Kazuya Kikuchi

    (Tokyo University of Foreign Studies)

  • Yukio Koriyama

    (CREST, Ecole Polytechnique, Institut Polytechnique de Paris)

Abstract

This paper studies a general class of social choice problems in which agents’ payoff functions (or types) are privately observable random variables, and monetary transfers are not available. We consider cardinal social choice functions which may respond to agents’ preference intensities as well as preference rankings. We show that a social choice function is ex ante Pareto efficient and Bayesian incentive compatible if and only if it is dictatorial. The result holds for arbitrary numbers of agents and alternatives, and under a fairly weak assumption on the joint distribution of types, which allows for arbitrary correlations and asymmetries.

Suggested Citation

  • Kazuya Kikuchi & Yukio Koriyama, 2024. "A general impossibility theorem on Pareto efficiency and Bayesian incentive compatibility," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 62(4), pages 789-797, June.
  • Handle: RePEc:spr:sochwe:v:62:y:2024:i:4:d:10.1007_s00355-024-01515-4
    DOI: 10.1007/s00355-024-01515-4
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    1. Eric Gao, 2025. "Paired Course and Dorm Allocation," Papers 2501.02686, arXiv.org, revised May 2025.

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