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An Algorithm for Identifying Least Manipulable Envy-Free and Budget-Balanced Allocations in Economies with Indivisibilities

Author

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  • Andersson, Tommy

    (Department of Economics, Lund University)

  • Ehlers, Lars

    (Département de sciences économiques, Université de Montréal)

Abstract

We analyze the problem of allocating indivisible objects and monetary compensations to a set of agents. In particular, we consider envy-free and budget-balanced rules that are least manipulable with respect to agents counting or with respect to utility gains. A key observation is that, for any profile of quasi-linear preferences, the outcome of any such least manipulable envy-free rule can be obtained via so-called agent-k-linked allocations. Given this observation, we provide an algorithm for identifying agent-k-linked allocations.

Suggested Citation

  • Andersson, Tommy & Ehlers, Lars, 2021. "An Algorithm for Identifying Least Manipulable Envy-Free and Budget-Balanced Allocations in Economies with Indivisibilities," Working Papers 2021:2, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2021_002
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Envy-freeness; Budget-balance; Least manipulable; Algorithm;
    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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