Manipulation via Endowments in Exchange Markets with Indivisible Goods
We consider exchange markets with heterogeneous indivisible goods. We are interested in exchange rules that are efficient and immune to manipulations via endowments (either with respect to hiding or destroying part of the endowment or transferring part of the endowment to another trader). We consider three manipulability axioms: hiding-proofness, destruction-proofness, and transfer-proofness. We prove that no rule satisfying efficiency and hiding-proofness (which implies individual rationality) exists. For two-agent exchange markets with separable and responsive preferences, we show that efficient, individually rational, and destruction-proof rules exist. However, for separable preferences, no rule satisfies efficiency, individual rationality, and destruction-proofness. In the case of transfer-proofness the compatibility with efficiency and individual rationality for the two-agent case extends to the unrestricted domain. For exchange markets with separable preferences and more than two agents no rule satisfies efficiency, individual rationality, and transfer-proofness.
|Date of creation:||01 Dec 2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 34 93 592 1203
Fax: +34 93 542-1223
Web page: http://pareto.uab.cat
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Klaus B. & Peters H. & Storcken T., 1995.
"Reallocation of an infinetely divisible good,"
012, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Barbera, S. & Sonnenschein, H., 1988.
"Voting By Quota And Committee,"
UFAE and IAE Working Papers
95-88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Postlewaite, Andrew, 1979. "Manipulation via Endowments," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 255-62, April.
- Tayfun Sonmez, 1999. "Strategy-Proofness and Essentially Single-Valued Cores," Econometrica, Econometric Society, vol. 67(3), pages 677-690, May.
- Fiestras-Janeiro, Gloria & Klijn, Flip & Sanchez, Estela, 2004.
"Manipulation of optimal matchings via predonation of endowment,"
Mathematical Social Sciences,
Elsevier, vol. 47(3), pages 295-312, May.
- Gloria Fiestras-Janeiro & Flip Klijn & Estela S?chez, 2003. "Manipulation of Optimal Matchings via Predonation of Endowment," UFAE and IAE Working Papers 561.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Murat Sertel, 2000.
"Manipulability of the Men-(Women) Optimal Matching Rule via Endowments,"
0014, Department of Economics, Bilkent University.
- Sertel, Murat R. & Ozkal-Sanver, Ipek, 2002. "Manipulability of the men- (women-) optimal matching rule via endowments," Mathematical Social Sciences, Elsevier, vol. 44(1), pages 65-83, September.
- Salvador Barbera & Hugo Sonnenschein & Lin Zhou, 1990.
"Voting by Committees,"
Cowles Foundation Discussion Papers
941, Cowles Foundation for Research in Economics, Yale University.
- Bettina Klaus & Hans Peters & Ton Storcken, 1998. "Strategy-proof division with single-peaked preferences and individual endowments," Social Choice and Welfare, Springer, vol. 15(2), pages 297-311.
- Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
When requesting a correction, please mention this item's handle: RePEc:aub:autbar:598.04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Xavier Vila)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.