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Group Strategyproof Cost Sharing: The Role of Indifferences

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  • Ruben Juarez

    (Department of Economics, University of Hawaii at Manoa)

Abstract

Every agent reports his willingness to pay for one unit of good. A mechanism allocates goods and cost shares to some agents. We characterize the group strategyproof (GSP) mechanisms under two alternative continuity conditions interpreted as tie-breaking rules. With the maximalist rule (MAX) an indi erent agent is always served. With the minimalist rule (MIN) an indi erent agent does not get a unit of good. GSP and MAX characterize the cross-monotonic mechanisms. These mechanisms are appropriate whenever symmetry is required. On the other hand, GSP andMIN characterize the sequential mechanisms. These mechanisms are appropriate whenever there is scarcity of the good. Our results are independent of an underlying cost function; they unify and strengthen earlier results for particular classes of cost functions.

Suggested Citation

  • Ruben Juarez, 2012. "Group Strategyproof Cost Sharing: The Role of Indifferences," Working Papers 201202, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201202
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    Cited by:

    1. Karl Jandoc & Ruben Juarez, 2019. "An Experimental Study of Self-Enforcing Coalitions," Games, MDPI, vol. 10(3), pages 1-32, August.
    2. Hiroki Shinozaki, 2022. "Characterizing pairwise strategy-proof rules in object allocation problems with money," ISER Discussion Paper 1187, Institute of Social and Economic Research, Osaka University.
    3. Kazuhiko Hashimoto & Hiroki Saitoh, 2016. "Strategy-proof rules for an excludable public good," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 749-766, April.
    4. Dobzinski, Shahar & Mehta, Aranyak & Roughgarden, Tim & Sundararajan, Mukund, 2018. "Is Shapley cost sharing optimal?," Games and Economic Behavior, Elsevier, vol. 108(C), pages 130-138.
    5. Mackenzie, Andrew & Trudeau, Christian, 2023. "On Groves mechanisms for costly inclusion," Theoretical Economics, Econometric Society, vol. 18(3), July.
    6. Mehta, Aranyak & Roughgarden, Tim & Sundararajan, Mukund, 2009. "Beyond Moulin mechanisms," Games and Economic Behavior, Elsevier, vol. 67(1), pages 125-155, September.
    7. Ruben Juarez & Michael Wu, 2019. "Routing-Proofness in Congestion-Prone Networks," Games, MDPI, vol. 10(2), pages 1-18, April.
    8. Ruben Juarez & Rajnish Kumar, 2013. "Implementing efficient graphs in connection networks," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(2), pages 359-403, October.
    9. Juarez, Ruben & Ko, Chiu Yu & Xue, Jingyi, 2018. "Sharing sequential values in a network," Journal of Economic Theory, Elsevier, vol. 177(C), pages 734-779.
    10. Jin Li & Jingyi Xue, 2013. "Egalitarian division under Leontief Preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 597-622, November.
    11. Dütting, Paul & Talgam-Cohen, Inbal & Roughgarden, Tim, 2017. "Modularity and greed in double auctions," Games and Economic Behavior, Elsevier, vol. 105(C), pages 59-83.
    12. Paul Dütting & Vasilis Gkatzelis & Tim Roughgarden, 2017. "The Performance of Deferred-Acceptance Auctions," Mathematics of Operations Research, INFORMS, vol. 42(4), pages 897-914, November.
    13. Mackenzie, Andrew & Trudeau, Christian, 2018. "Club good mechanisms: from free-riders to citizen-shareholders, from impossibility to characterization," Research Memorandum 012, Maastricht University, Graduate School of Business and Economics (GSBE).
    14. Dütting, Paul & Talgam-Cohen, Inbal & Roughgarden, Tim, 2017. "Modularity and greed in double auctions," LSE Research Online Documents on Economics 83199, London School of Economics and Political Science, LSE Library.
    15. Han, Lining & Juarez, Ruben, 2018. "Free intermediation in resource transmission," Games and Economic Behavior, Elsevier, vol. 111(C), pages 75-84.
    16. Karl Jandoc & Ruben Juarez, 2017. "Self-enforcing coalitions with power accumulation," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(2), pages 327-355, May.
    17. Juarez, Ruben & Nitta, Kohei & Vargas, Miguel, 2021. "Coalitional efficient profit-sharing," Economics Letters, Elsevier, vol. 204(C).
    18. Hagen, Martin, 2023. "Collusion-proof mechanisms for multi-unit procurement," Games and Economic Behavior, Elsevier, vol. 138(C), pages 281-298.

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    More about this item

    Keywords

    Cost sharing; Mechanism design; Group strategyproof; Tie-breaking rule;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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