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Strategy-Proofness and Efficiency for Non-quasi-linear Common-Tiered-Object Preferences: Characterization of Minimum Price Rule

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  • Yu Zhou
  • Shigehiro Serizawa

Abstract

We consider the allocation problem of assigning heterogeneous objects to a group of agents and determining how much they should pay. Each agent receives at most one object. Agents have non-quasi-linear preferences over bundles, each consisting of an object and a payment. Especially, we focus on the cases: (i) objects are linearly ranked, and as long as objects are equally priced, agents commonly prefer a higher ranked object to a lower ranked one, and (ii) objects are partitioned into several tiers, and as long as objects are equally priced, agents commonly prefer an object in the higher tier to an object in the lower tier. The minimum price rule assigns minimum price (Walrasian) equilibrium to each preference profile. We establish: (i) on a common-object-ranking domain, the minimum price rule is the only rule satisfying efficiency, strategy-proofness, individual rationality and no subsidy, and (ii) on a common-tiered-object domain, the minimum price rule is the only rule satisfying these four axioms.

Suggested Citation

  • Yu Zhou & Shigehiro Serizawa, 2016. "Strategy-Proofness and Efficiency for Non-quasi-linear Common-Tiered-Object Preferences: Characterization of Minimum Price Rule," ISER Discussion Paper 0971, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:0971
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    References listed on IDEAS

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    Cited by:

    1. Yu Zhou & Shigehiro Serizawa, 2020. "Serial Vickrey Mechanism," ISER Discussion Paper 1095, Institute of Social and Economic Research, Osaka University.
    2. Kazumura, Tomoya & Mishra, Debasis & Serizawa, Shigehiro, 2020. "Mechanism design without quasilinearity," Theoretical Economics, Econometric Society, vol. 15(2), May.
    3. Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, 2017. "Strategy-proof multi-object auction design: Ex-post revenue maximization with no wastage," Discussion Papers 17-03, Indian Statistical Institute, Delhi.
    4. Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, 2017. "Strategy-proof multi-object allocation: Ex-post revenue maximization with no wastage," Working Papers e116, Tokyo Center for Economic Research.
    5. Andersson, Tommy & Svensson, Lars-Gunnar, 2018. "Sequential rules for house allocation with price restrictions," Games and Economic Behavior, Elsevier, vol. 107(C), pages 41-59.
    6. Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, 2017. "Strategy-proof multi-object auction design: Ex-post revenue maximization with no wastage," ISER Discussion Paper 1001, Institute of Social and Economic Research, Osaka University.
    7. Yu Zhou & Youngsub Chun & Shigehiro Serizawa, 2022. "A characterization of the Vickrey rule in slot allocation problems," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 38-49, March.
    8. Yu Zhou & Shigehiro Serizawa, 2021. "Multi-object Auction Design Beyond Quasi-linearity: Leading Examples," ISER Discussion Paper 1116, Institute of Social and Economic Research, Osaka University.

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