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Strategy-Proofness and Essentially Single-Valued Cores Revisited

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  • Lars EHLERS

Abstract

We consider general allocation problems with indivisibilities where agents' preferences possibly exhibit externalities. In such contexts many different core notions were proposed. One is the ? -core whereby blocking is only allowed via allocations where the non-blocking agents receive their endowment. We show that if there exists an allocation rule satisfying individual rationality, efficiency, and strategy-proofness, then for any problem for which the ? -core is non-empty, the allocation rule must choose a ? -core allocation and all agents are indifferent between all allocations in the ? -core. We apply our result to housing markets, coalition formation and networks.

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  • Lars EHLERS, 2014. "Strategy-Proofness and Essentially Single-Valued Cores Revisited," Cahiers de recherche 05-2014, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  • Handle: RePEc:mtl:montec:05-2014
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    Cited by:

    1. Maria Gabriella Graziano & Claudia Meo & Nicholas C. Yannelis, 2018. "Housing market models with consumption externalities," CSEF Working Papers 500, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Maria Gabriella Graziano & Claudia Meo & Nicholas C. Yannelis, 2020. "Shapley and Scarf housing markets with consumption externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1481-1514, September.

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    More about this item

    Keywords

    General allocation problems; externalities; strategy-proofness; ? -core;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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