Double Implementation in a Market for Indivisible Goods with a Price Constraint
I consider the problem of assigning agents to indivisible objects, in which each agent pays a price for his object and all prices sum to a given constant. The objective is to select an assignment-price pair that is envy-free with respect to the agents' true preferences. I propose a simple mechanism whereby agents announce valuations for all objects and an envy-free allocation is selected with respect to these announced preferences. I prove that the proposed mechanism implements both in Nash and strong Nash equilibrium the set of true envy-free allocations.
|Date of creation:||Dec 2005|
|Date of revision:|
|Publication status:||Published in Games and Economic Behaviour , 62(1), pp. 140-154, January 2008.|
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