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Incentives and implementation in allocation problems with externalities

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  • Fonseca-Mairena, María Haydée
  • Triossi, Matteo

Abstract

We study the implementation of social choice rules in environments with externalities. We prove the impossibility of implementing efficient and α-individually rational rules in dominant strategies. We prove that the α-core is implementable in Nash equilibrium under mild restrictions and discuss the maximality and the minimality of our results. We extend our analysis to weakly efficient rules.

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  • Fonseca-Mairena, María Haydée & Triossi, Matteo, 2022. "Incentives and implementation in allocation problems with externalities," Journal of Mathematical Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:mateco:v:99:y:2022:i:c:s0304406821001658
    DOI: 10.1016/j.jmateco.2021.102613
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    References listed on IDEAS

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    Cited by:

    1. María Haydée Fonseca‐Mairena & Matteo Triossi, 2023. "Notes on marriage markets with weak externalities," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 860-868, October.

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