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Incentives and Efficiency in Constrained Allocation Mechanisms

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  • Joseph Root
  • David S. Ahn

Abstract

We study private-good allocation under general constraints. Several prominent examples are special cases, including house allocation, roommate matching, social choice, and multiple assignment. Every individually strategy-proof and Pareto efficient two-agent mechanism is an "adapted local dictatorship." Every group strategy-proof N-agent mechanism has two-agent marginal mechanisms that are adapted local dictatorships. These results yield new characterizations and unifying insights for known characterizations. We find all group strategy-proof and Pareto efficient mechanisms for the roommates problem. We give a related result for multiple assignment. We prove the Gibbard--Satterthwaite Theorem and give a partial converse.

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  • Joseph Root & David S. Ahn, 2020. "Incentives and Efficiency in Constrained Allocation Mechanisms," Papers 2006.06776, arXiv.org, revised Nov 2023.
    • Handle: RePEc:arx:papers:2006.06776
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    Cited by:

    1. Marek Pycia & M. Utku Ünver, 2021. "Arrovian Efficiency and Auditability in Discrete Mechanism Design," Boston College Working Papers in Economics 1044, Boston College Department of Economics.
    2. Tayfun Sonmez & Utku Unver, 2022. "Market Design for Social Justice: A Case Study on a Constitutional Crisis in India," Papers 2210.10166, arXiv.org, revised Nov 2022.
    3. Pycia, Marek & Ãœnver, M. Utku, 2020. "Arrovian Efficiency and Auditability in the Allocation of Discrete Resources," CEPR Discussion Papers 15377, C.E.P.R. Discussion Papers.
    4. Sophie Bade & Joseph Root, 2023. "Royal Processions: Incentives, Efficiency and Fairness in Two-sided Matching," Papers 2301.13037, arXiv.org.
    5. Marek Pycia & Peter Troyan, 2023. "A Theory of Simplicity in Games and Mechanism Design," Econometrica, Econometric Society, vol. 91(4), pages 1495-1526, July.
    6. Tayfun Sönmez & M. Utku Ünver, 2022. "How (not) to reform India's affirmative action policies for its economically weaker segments," Boston College Working Papers in Economics 1054, Boston College Department of Economics.

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