Abstract
We study the problem of allocating several units of homogeneous indivisible goods when monetary compensations are possible. First, we show that there is no strategy-proof, budget balanced, and egalitarian-equivalent mechanism even on extremely restricted preference domains. Next, we present two characterizations of strategy-proof and decision-efficient mechanisms that satisfy a stronger version of egalitarian-equivalence on preference domains bounded above. These characterizations tell us a trade-off between strategy-proofness and Pareto efficiency, and a relationship with strategy-proof and envy-free mechanisms. Finally, we prove that no egalitarian-equivalent mechanism is Nash implementable even on extremely restricted preference domains.
Original language | English |
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Pages (from-to) | 659-670 |
Number of pages | 12 |
Journal | Economic Theory |
Volume | 23 |
Issue number | 3 |
Publication status | Published - 2004 Apr 1 |
Externally published | Yes |
Keywords
- Egalitarian-equivalence
- Indivisible goods
- Nash implementation
- Strategy-proofness
ASJC Scopus subject areas
- Economics and Econometrics