Fair and group strategy-proof good allocation with money

We completely characterize the class of fair and group strategy-proof mechanisms. We consider two notions of fairness, anonymity in welfare and no-envy. Both fairness axioms, when applied with strategy-proofness, imply decision efficiency, and lead to the same class of group strategy-proof mechanisms (where the group size is restricted to two). We find that the only feasible mechanism satisfying a mild zero transfer axiom, in this class, is the Pivotal mechanism.

[1]  Salvador Barberà,et al.  Individual versus group strategy-proofness: When do they coincide? , 2010, J. Econ. Theory.

[2]  Shinji Ohseto Strategy-proof and efficient allocation of an indivisible good on finitely restricted preference domains , 2000, Int. J. Game Theory.

[3]  Shinji Ohseto Characterizations of strategy-proof and fair mechanisms for allocating indivisible goods , 2006 .

[4]  Kazuhiko Hashimoto,et al.  Strategy-proof and anonymous rule in queueing problems: a relationship between equity and efficiency , 2012, Soc. Choice Welf..

[5]  M. Jackson,et al.  Strategy-Proof Exchange , 1995 .

[6]  H. Varian Equity, Envy and Efficiency , 1974 .

[7]  William Vickrey,et al.  Counterspeculation, Auctions, And Competitive Sealed Tenders , 1961 .

[8]  W. Thomson,et al.  The fair allocation of an indivisible good when monetary compensations are possible , 1993 .

[9]  Toyotaka Sakai,et al.  The positive consequence of strategic manipulation in indivisible good allocation , 2009, Int. J. Game Theory.

[10]  Shigehiro Serizawa,et al.  Pairwise Strategy-Proofness and Self-Enforcing Manipulation , 2005, Soc. Choice Welf..

[11]  Toyotaka Sakai,et al.  An equity characterization of second price auctions when preferences may not be quasilinear , 2013 .

[12]  H. Moulin,et al.  Random Matching under Dichotomous Preferences , 2004 .

[13]  Shigehiro Serizawa,et al.  Coalitionally Strategy-Proof Rules in Allotment Economies with Homogeneous Indivisible Goods , 2009 .

[14]  Duygu Yengin,et al.  Fair Groves mechanisms , 2008, Soc. Choice Welf..

[15]  Lars-Gunnar Svensson,et al.  Strategy-proof and nonbossy allocation of indivisible goods and money , 2002 .

[16]  D. Foley Resource allocation and the public sector , 1967 .

[17]  William Thomson,et al.  NO-ENVY AND CONSISTENCY IN ECONOMIES WITH INDIVISIBLE GOODS , 1991 .

[18]  Manipushpak Mitra,et al.  Group strategyproofness in queueing models , 2011, Games Econ. Behav..

[19]  Yuji Fujinaka,et al.  The Manipulability of Fair Solutions in Assignment of an Indivisible Object with Monetary Transfers , 2006 .

[20]  E. H. Clarke Multipart pricing of public goods , 1971 .

[21]  Theodore Groves,et al.  Incentives in Teams , 1973 .

[22]  Debasis Mishra,et al.  Cycle Monotonicity in Scheduling Models , 2010 .

[23]  Bengt Holmstrom,et al.  GROVES' SCHEME ON RESTRICTED DOMAINS , 1979 .

[24]  Szilvia Pápai,et al.  Groves sealed bid auctions of heterogeneous objects with fair prices , 2003, Soc. Choice Welf..

[25]  Itai Ashlagi,et al.  Characterizing Vickrey allocation rule by anonymity , 2011, Soc. Choice Welf..

[26]  Duygu Yengin,et al.  Egalitarian-equivalent Groves mechanisms in the allocation of heterogenous objects , 2012, Soc. Choice Welf..

[27]  Lars-Gunnar Svensson Large Indivisibles: An analysis with respect to price equilibrium and fairness , 1983 .