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The structure of (local) ordinal Bayesian incentive compatible random rules

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  • Karmokar, Madhuparna
  • Roy, Souvik

Abstract

We explore the structure of local ordinal Bayesian incentive compatible (LOBIC) random Bayesian rules (RBRs). We show that under lower contour monotonicity, almost all (with Lebesgue measure 1) LOBIC RBRs are local dominant strategy incentive compatible (LDSIC). We also provide conditions on domains so that unanimity implies lower contour monotonicity for almost all LOBIC RBRs. We provide sufficient conditions on a domain so that almost all unanimous RBRs on it (i) are Pareto optimal, (ii) are tops-only, and (iii) are only-topset. Finally, we provide a wide range of applications of our results on the unrestricted, single-peaked (on graphs), hybrid, multiple single-peaked, single-dipped, single-crossing, multidimensional separable, lexicographic, and domains under partitioning. We additionally establish the marginal decomposability property for both random social choice functions and almost all RBRs on multi-dimensional domains, and thereby generalize Breton and Sen (1999). Since OBIC implies LOBIC by definition, all our results hold for OBIC RBRs.

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  • Karmokar, Madhuparna & Roy, Souvik, 2020. "The structure of (local) ordinal Bayesian incentive compatible random rules," MPRA Paper 103494, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:103494
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    Cited by:

    1. Majumdar, Dipjyoti & Roy, Souvik, 2021. "Ordinally Bayesian incentive compatible probabilistic voting rules," Mathematical Social Sciences, Elsevier, vol. 114(C), pages 11-27.
    2. Miho Hong & Semin Kim, 2023. "Unanimity and local incentive compatibility in sparsely connected domains," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(2), pages 385-411, August.
    3. Karmokar, Madhuparna & Majumdar, Dipjyoti & Roy, Souvik, 2024. "Some further results on random OBIC rules," Mathematical Social Sciences, Elsevier, vol. 131(C), pages 102-112.

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    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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