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An algorithm for identifying least manipulable envy‐free and budget‐balanced allocations in economies with indivisibilities

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  • Tommy Andersson
  • Lars Ehlers

Abstract

We analyze the problem of allocating indivisible objects and monetary compensations to a set of agents. In particular, we consider envy‐free and budget‐balanced rules that are least manipulable with respect to agents counting or with respect to utility gains. A key observation is that, for any profile of quasi‐linear preferences, the outcome of any such least manipulable envy‐free rule can be obtained via so‐called agent‐ k‐linked allocations. Given this observation, we provide an algorithm for identifying agent‐ k‐linked allocations.

Suggested Citation

  • Tommy Andersson & Lars Ehlers, 2022. "An algorithm for identifying least manipulable envy‐free and budget‐balanced allocations in economies with indivisibilities," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 50-60, March.
    • Handle: RePEc:bla:ijethy:v:18:y:2022:i:1:p:50-60
    DOI: 10.1111/ijet.12300
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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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