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A gibbad-satterthwaite theorem for public good economies

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  • Moscoso, María José

Abstract

We study the properties of mechanisms for deciding upon the provision of public goods when the feasible set is exogenously given (by financial and/or technological constraints), and individuals' preferences are represented by continuous, increasing and concave utility functions, and we establish a result analog to the Gibbard-Satterthwaite Theorem: strategy-proof mechanisms are dictatorial. Further, efficient and strategy-proof mechanisms are strongly dictatorial (i.e., maximize the dictator's welfare on the entire feasible set.)

Suggested Citation

  • Moscoso, María José, 2001. "A gibbad-satterthwaite theorem for public good economies," UC3M Working papers. Economics we014912, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:we014912
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    1. Salvador Barbera & Matthew Jackson, 1991. "A Characterization of Strategy-Proof Social Choice Functions for Economies with Pure Public Goods," Discussion Papers 964, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
    3. Lin Zhou, 1991. "Impossibility of Strategy-Proof Mechanisms in Economies with Pure Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 107-119.
    4. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
    5. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
    6. Barbera, S. & Peleg, B., 1988. "Strategy-Proof Voting Schemes With Continuous Preferences," UFAE and IAE Working Papers 91.88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    7. Diego Moreno, 1999. "Strategy-proof allocation mechanisms for pure public goods economies when preferences are monotonic," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 13(1), pages 183-197.
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