Strategy-proofness and Single-crossing I Am Grateful to Two Anonymous Referees and the Coeditor, Martin Osborne, for Helpful Comments and Corrections on an Earlier Draft. I Also Thank

This paper analyzes strategy-proof collective choice rules when individuals have single-crossing preferences on a finite and ordered set of social alternatives. It shows that a social choice rule is anonymous, unanimous, and strategy-proof on a maximal single-crossing domain if and only if it is an extended median rule with n − 1 fixed ballots distributed over the individuals' most preferred alternatives. As a by-product, the paper also proves that strategy-proofness implies the tops-only property. It also offers a strategic foundation for the so-called " single-crossing version " of the Median Voter Theorem, by showing that the median ideal point can be implemented in dominant strategies by a direct mechanism in which every individual reveals his true preferences. 1. I In social choice theory, a collective decision making process is usually represented by a social choice rule. A social choice rule associates a unique alternative from the set of feasible alternatives to every possible list of preferences of the individuals in the society. A social choice rule is said to be strategy-proof if no individual can ever benefit from misrepresenting his true preferences. A fundamental result in social choice theory , known as the Gibbard (1973)–Satterthwaite (1975) Theorem, shows that, if the set of alternatives contains at least three possible outcomes and individual preferences are not restricted in any particular way, then every strategy-proof social choice rule is dictatorial. That is, there is an individual whose preferences always dictate the final choice regardless of the other individuals' preferences. The Gibbard–Satterthwaite Theorem holds under the so called universal domain assumption , which means that every profile of complete and transitive preference relations is an admissible element of the domain of the social choice rule. In many economic and political applications, however, preferences satisfy additional properties. A case in point is the single-peaked property.

[1]  R. Myerson Fundamentals of Social Choice Theory , 2013 .

[2]  J. Weymark Strategy-Proofness and the Tops-Only Property , 2008 .

[3]  Bernard Monjardet,et al.  Acyclic Domains of Linear Orders: A Survey , 2006, The Mathematics of Preference, Choice and Order.

[4]  Dennis Epple,et al.  Admission, Tuition, and Financial Aid Policies in the Market for Higher Education , 2006 .

[5]  Fernando A. Tohmé,et al.  Single-Crossing, Strategic Voting and the Median Choice Rule , 2006, Soc. Choice Welf..

[6]  Fan-chin Kung,et al.  An Algorithm for Stable and Equitable Coalition Structures with Public Goods , 2005 .

[7]  J. Kelly,et al.  A strategy-proofness characterization of majority rule , 2003 .

[8]  Christian List,et al.  A possibility theorem on aggregation over multiple interconnected propositions , 2003, Math. Soc. Sci..

[9]  D. Epple,et al.  Interjurisdictional Sorting and Majority Rule: An Empirical Analysis , 2001 .

[10]  M. Breton,et al.  Strategy-proof social choice with continuous separable preferences , 1999 .

[11]  Stephen Ching,et al.  Strategy-proofness and “median voters” , 1998, Int. J. Game Theory.

[12]  Joshua S. Gans,et al.  Majority voting with single-crossing preferences , 1996 .

[13]  Paul Rothstein,et al.  Representative voter theorems , 1991 .

[14]  Paul Rothstein,et al.  Order restricted preferences and majority rule , 1990 .

[15]  Allan H. Meltzer,et al.  A Rational Theory of the Size of Government , 1981, Journal of Political Economy.

[16]  Jean-Michel Grandmont,et al.  INTERMEDIATE PREFERENCES AND THE MAJORITY RULE , 1978 .

[17]  Kevin Roberts,et al.  Voting over income tax schedules , 1977 .

[18]  Frank Westhoff,et al.  Existence of equilibria in economies with a local public good , 1977 .

[19]  M. Satterthwaite Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions , 1975 .

[20]  Thomas Romer,et al.  Individual welfare, majority voting, and the properties of a linear income tax , 1975 .

[21]  A. Gibbard Manipulation of Voting Schemes: A General Result , 1973 .

[22]  D. Black On the Rationale of Group Decision-making , 1948, Journal of Political Economy.

[23]  S. Barberà,et al.  TOP MONOTONICITY: A WEAK DOMAIN RESTRICTION ENCOMPASSING SINGLE PEAKEDNESS, SINGLE CROSSING AND ORDER RESTRICTION , 2007 .

[24]  Salvador Barberà,et al.  Centre de Referència en Economia Analítica Barcelona Economics Working Paper Series Working Paper n o 57 Choosing How to Choose : Self-Stable Majority Rules and Constitutions , 2004 .

[25]  Dennis Epple,et al.  Equilibrium and Local Redistribution in an Urban Economy when Households Differ in both Preferences and Incomes , 1998 .

[26]  G. Demange Intermediate Preferences and Stable Coalition Structures , 1994 .

[27]  Paul R. Milgrom,et al.  Monotone Comparative Statics , 1994 .

[28]  H. Moulin On strategy-proofness and single peakedness , 1980 .