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Efficient and strategy-proof mechanism under general constraints

Author

Listed:
  • Imamura, Kenzo

    (Department of Economics, University of Tokyo)

  • Kawase, Yasushi

    (Graduate School of Information Science and Technology, University of Tokyo)

Abstract

This study investigates efficient and strategy-proof mechanisms for allocating indivisible goods under constraints. First, we examine a setting without endowments. In this setting, we introduce a class of constraints, ordered accessibility, for which the serial dictatorship mechanism is Pareto-efficient (PE), individually rational (IR), and group strategy-proof (GSP). Then, we prove that accessibility is a necessary condition for the existence of PE, IR, and GSP mechanisms. Moreover, we show that the SD mechanism with a dynamically constructed order satisfies PE, IR, and GSP if one school has an arbitrary accessible constraint and each of the other schools has a capacity constraint. Second, we examine a setting with endowments. We find that the \emph{generalized matroid} is a necessary and sufficient condition on the constraint structure for the existence of a mechanism that is PE, IR, and strategy-proof (SP). We also demonstrate that a top trading cycles mechanism satisfies PE, IR, and GSP under any generalized matroid constraint. Finally, we observe that any two out of the three properties---PE, IR, and GSP---can be achieved under general constraints.

Suggested Citation

  • Imamura, Kenzo & Kawase, Yasushi, 0. "Efficient and strategy-proof mechanism under general constraints," Theoretical Economics, Econometric Society.
  • Handle: RePEc:the:publsh:6039
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    More about this item

    Keywords

    Matching with constraints; efficient matching; generalized matroid; strategy-proofness;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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