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Characterizing Welfare-egalitarian Mechanisms with Solidarity When Valuations are Private Information

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  • Duygu Yengin

    () (School of Economics, University of Adelaide)

Abstract

In the problem of assigning indivisible goods and monetary transfers, we characterize welfare-egalitarian mechanisms (that are decision-efficient and incentive compatible) with an axiom of solidarity under preference changes and a fair ranking axiom of order preservation. This result is in line with characterizations of egalitarian rules with solidarity in other economic models. We also show that we can replace order-preservation with egalitarian-equivalence or no-envy (on the subadditive domain) and still characterize the welfare-egalitarian class. We show that, in the model we consider, the welfare-egalitarian mechanisms appear to be the best candidates to satisfy several different fairness and solidarity requirements as well as generating bounded deficits.

Suggested Citation

  • Duygu Yengin, 2011. "Characterizing Welfare-egalitarian Mechanisms with Solidarity When Valuations are Private Information," School of Economics Working Papers 2011-20, University of Adelaide, School of Economics.
  • Handle: RePEc:adl:wpaper:2011-20
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    File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2011-20.pdf
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    References listed on IDEAS

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    Cited by:

    1. Duygu Yengin, 2013. "Identical Preferences Lower Bound for Allocation of Heterogenous Tasks and NIMBY Problems," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(4), pages 580-601, August.
    2. Duygu Yengin & Youngsub Chun, 2015. "Welfare Lower Bounds and Strategyproofness in the Queueing Problem," School of Economics Working Papers 2015-11, University of Adelaide, School of Economics.
    3. Yengin, Duygu, 2013. "Population monotonic and strategy-proof mechanisms respecting welfare lower bounds," Journal of Mathematical Economics, Elsevier, vol. 49(5), pages 389-397.
    4. Duygu Yengin, 2017. "No-envy and egalitarian-equivalence under multi-object-demand for heterogeneous objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 81-108, January.
    5. Duygu Yengin, 2011. "Population Monotonic and Strategy-Proof Mechanisms Respecting Welfare Lower Bounds," School of Economics Working Papers 2011-34, University of Adelaide, School of Economics.

    More about this item

    Keywords

    egalitarianism; solidarity; order preservation; egalitarian-equivalence; no-envy; distributive justice; NIMBY problems; imposition of tasks; allocation of indivisible (public) goods and money; the Groves mechanisms; strategy-proofness;

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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