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Strategy-proof package assignment

  • Erlanson, Albin

    ()

    (Department of Economics)

  • Szwagrzak, Karol

    ()

    (Department of Business and Economics)

We examine the strategy-proof allocation of multiple divisible and indivisible resources; an application is the assignment of packages of tasks, workloads, and compensations among the members of an organization. We find that any allocation mechanism obtained by maximizing a separably concave function over a polyhedral extension of the set of Pareto-efficient allocations is strategy-proof. Moreover, these are the only strategy-proof and unanimous mechanisms satisfying a coherence property and responding well to changes in the availability of resources. These mechanisms generalize the parametric rationing mechanisms (Young, 1987), some of which date back to the Babylonian Talmud.

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File URL: http://static.sdu.dk/mediafiles//D/E/A/%7BDEA6DF8B-9FF5-4EDE-B551-B94E60DEDFEF%7Ddpbe5_2014.pdf
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Paper provided by Department of Business and Economics, University of Southern Denmark in its series Discussion Papers of Business and Economics with number 5/2014.

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Length: 40 pages
Date of creation: 07 Mar 2014
Date of revision:
Handle: RePEc:hhs:sdueko:2014_005
Contact details of provider: Postal: Department of Business and Economics, University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark
Phone: 65 50 32 33
Fax: 65 50 32 37
Web page: http://www.sdu.dk/ivoe
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