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Strategy-Proof Mechanisms With Private And Public Goods

Author

Listed:
  • José Rueda-Llano

    () (Universidad de Alicante)

  • Luis Corchón

    () (Universidad de Alicante)

Abstract

In this paper we develop a differentiable approach to deal with incentives in a, possibly small, subset of a general domain of preferences in economies with one public and one private good. We show that, for two agents, there is no social rule which is efficient, nondictatorial and strategy-proof. For the case of more agents the same result occurs when nondictatorship is replaced by Individual Rationality or by Envy-Freeness. Journal of Economic Literature

Suggested Citation

  • José Rueda-Llano & Luis Corchón, 2004. "Strategy-Proof Mechanisms With Private And Public Goods," Working Papers. Serie AD 2004-29, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2004-29
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2004-29.pdf
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    Keywords

    Strategy-proofness; public goods economies; differentiable mechanisms;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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