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Double Implementation in a Market for Indivisible Goods with a Price Constraint

I consider the problem of assigning agents to objects where each agent must pay the price of the object he gets and prices must sum to a given number. The objective is to select an assignment-price pair that is envy-free with respect to the true preferences. I prove that the proposed mechanism will implement both in Nash and strong Nash the set of envy-free allocations. The distinguishing feature of the mechanism is that it treats the announced preferences as the true ones and selects an envy-free allocation with respect to the announced preferences.

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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 623.04.

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Length: 19
Date of creation: 10 Sep 2004
Date of revision:
Handle: RePEc:aub:autbar:623.04
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  1. Claus-Jochen Haake & Matthias G. Raith & Francis Su, 2000. "Bidding for Envy-Freeness: A Procedural Approach to n-Player Fair Division Problems," Claremont Colleges Working Papers 2000-47, Claremont Colleges.
  2. Atila Abdulkadiroğlu & Tayfun Sönmez & M. Utku Ünver, 2004. "Room assignment-rent division: A market approach," Social Choice and Welfare, Springer, vol. 22(3), pages 515-538, 06.
  3. Leonard, Herman B, 1983. "Elicitation of Honest Preferences for the Assignment of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 461-79, June.
  4. Tadenuma Koichi & Thomson William, 1995. "Games of Fair Division," Games and Economic Behavior, Elsevier, vol. 9(2), pages 191-204, May.
  5. Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-39, July.
  6. Brams, S.J. & Kilgour, D.M., 1999. "Competitive Fair Division," Working Papers 99-05, C.V. Starr Center for Applied Economics, New York University.
  7. Svensson, Lars-Gunnar, 1983. "Large Indivisibles: An Analysis with Respect to Price Equilibrium and Fairness," Econometrica, Econometric Society, vol. 51(4), pages 939-54, July.
  8. Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986. "Multi-Item Auctions," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 863-72, August.
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