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Least Manipulable Envy-free Rules in Economies with Indivisibilities

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We consider envy-free and budget-balanced allocation rules for problems where a number of indivisible objects and a fixed amount of money is allocated among a group of agents. In "small" economies, we identify under classical preferences each agent's maximal gain from manipulation. Using this result we find the envy-free and budget-balanced allocation rules which are least manipulable for each preference profile in terms of any agent's maximal gain. If preferences are quasi-linear, then we can find an envy-free and budget-balanced allocation rule such that for any problem, the maximal utility gain from manipulation is equalized among all agents.

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  • Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2012. "Least Manipulable Envy-free Rules in Economies with Indivisibilities," Working Papers 2012:8, Lund University, Department of Economics, revised 30 Sep 2013.
    • Handle: RePEc:hhs:lunewp:2012_008
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    Cited by:

    1. Rodrigo A. Velez, 2017. "Equitable rent division," Working Papers 20170818-001, Texas A&M University, Department of Economics.
    2. Somouaoga Bonkoungou & Alexander S. Nesterov, 2020. "Comparing School Choice and College Admission Mechanisms By Their Immunity to Strategic Admissions," Papers 2001.06166, arXiv.org, revised Jan 2020.
    3. Rodrigo A. Velez, 2017. "Sharing an increase of the rent fairly," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 59-80, January.
    4. DECERF, Benoit & VAN DER LINDEN, Martin, 2016. "A criterion to compare mechanisms when solutions are not unique, with applications to constrained school choice," LIDAM Discussion Papers CORE 2016033, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Velez, Rodrigo A., 2023. "Equitable rent division on a soft budget," Games and Economic Behavior, Elsevier, vol. 139(C), pages 1-14.
    6. ANDERSSON, Tommy & EHLERS, Lars, 2013. "An algorithm for identifying agent-k-linked allocations in economies with indivisibilities," Cahiers de recherche 2013-12, Universite de Montreal, Departement de sciences economiques.
    7. Bonkoungou, Somouaoga & Nesterov, Alexander, 2023. "Incentives in matching markets: counting and comparing manipulating agents," Theoretical Economics, Econometric Society, vol. 18(3), July.
    8. Tommy Andersson & Lars Ehlers, 2022. "An algorithm for identifying least manipulable envy‐free and budget‐balanced allocations in economies with indivisibilities," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 50-60, March.
    9. Nicolò, Antonio & Velez, Rodrigo A., 2017. "Divide and compromise," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 100-110.
    10. Benoit Decerf & Francois Woitrin, 2022. "Criteria to compare mechanisms that partially satisfy a property: an axiomatic study," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(4), pages 835-862, May.
    11. Fujinaka, Yuji & Wakayama, Takuma, 2015. "Maximal manipulation of envy-free solutions in economies with indivisible goods and money," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 165-185.
    12. Rodrigo A. Velez, 2019. "Expressive mechanisms for equitable rent division on a budget," Papers 1902.02935, arXiv.org, revised Apr 2020.
    13. Martin Van der Linden, 2019. "Deferred acceptance is minimally manipulable," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(2), pages 609-645, June.
    14. Yi, Jianxin & Li, Yong, 2016. "A general impossibility theorem and its application to individual rights," Mathematical Social Sciences, Elsevier, vol. 81(C), pages 79-86.

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    More about this item

    Keywords

    (Least) Manipulability; Envy-freeness; Budget-Balance; Indivisibilities.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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