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Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule

  • Serizawa, Shigehiro

    ()

    (Institute of Social and Economic Research, Osaka University)

  • Morimoto, Shuhei

    ()

    (JSPS Research Fellow/Graduate School of Economics, Kobe University)

We consider the problem of allocating objects to a group of agents and how much agents should pay. Each agent receives at most one object and has non-quasi-linear preferences. Non-quasi-linear preferences describe environments where payments influence agents' abilities to utilize objects or derive benefits from them. The ``minimum price Walrasian (MPW) rule'' is the rule that assigns a minimum price Walrasian equilibrium allocation to each preference profile. We establish that the MPW rule is the unique rule satisfying \textit{strategy-proofness}, \textit{efficiency}, \textit{individual rationality}, and \textit{no subsidy for losers}. Since the outcome of the MPW rule coincides with that of the simultaneous ascending (SA) auction, our result supports SA auctions adopted by many governments.

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Article provided by Econometric Society in its journal Theoretical Economics.

Volume (Year): 10 (2015)
Issue (Month): 2 (May)
Pages:

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Handle: RePEc:the:publsh:1470
Contact details of provider: Web page: http://econtheory.org

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