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Strategy-proof multi-object mechanism design: Ex-post revenue maximization with non-quasilinear preferences

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  • Tomoya Kazumura
  • Debasis Mishra
  • Shigehiro Serizawa

Abstract

A seller is selling multiple objects to a set of agents, who can buy at most one object. Each agent's preference over (object, payment) pairs need not be quasilinear. The seller considers the following desiderata for her mechanism, which she terms desirable: (1) strategy-proofness, (2) ex-post individual rationality, (3) equal treatment of equals, (4) no wastage (every object is allocated to some agent). The minimum Walrasian equilibrium price (MWEP) mechanism is desirable. We show that at each preference profile, the MWEP mechanism generates more revenue for the seller than any desirable mechanism satisfying no subsidy. Our result works for the quasilinear domain, where the MWEP mechanism is the VCG mechanism, and for various non-quasilinear domains, some of which incorporate positive income effect of agents. We can relax no subsidy to no bankruptcy in our result for certain domains with positive income effect. .Creation-Date: 2017-05

Suggested Citation

  • Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, "undated". "Strategy-proof multi-object mechanism design: Ex-post revenue maximization with non-quasilinear preferences," ISER Discussion Paper 1001r, Institute of Social and Economic Research, Osaka University, revised Jan 2020.
    • Handle: RePEc:dpr:wpaper:1001r
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    Cited by:

    1. Yuya Wakabayashi & Ryosuke Sakai & Shigehiro Serizawa, 2022. "A Characterization of the Minimum Price Walrasian Rule with Reserve Prices for an Arbitrary Number of Agents and Objects," ISER Discussion Paper 1161, Institute of Social and Economic Research, Osaka University.
    2. Ryosuke Sakai & Shigehiro Serizawa, 2023. "Strategy-proof mechanism design with non-quasi-linear preferences: ex-post revenue maximization for an arbitrary number of objects," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 60(1), pages 103-120, January.
    3. Zhou, Yu & Serizawa, Shigehiro, 2023. "Multi-object auction design beyond quasi-linearity: Leading examples," Games and Economic Behavior, Elsevier, vol. 140(C), pages 210-228.
    4. Yu Zhou & Shigehiro Serizawa, 2020. "Serial Vickrey Mechanism," ISER Discussion Paper 1095, Institute of Social and Economic Research, Osaka University.
    5. Bando, Keisuke & Kawasaki, Ryo, 2021. "Stability properties of the core in a generalized assignment problem," Games and Economic Behavior, Elsevier, vol. 130(C), pages 211-223.
    6. Kazumura, Tomoya & Mishra, Debasis & Serizawa, Shigehiro, 2020. "Mechanism design without quasilinearity," Theoretical Economics, Econometric Society, vol. 15(2), May.
    7. Hiroki Shinozaki, 2022. "Egalitarian-Equivalence and Strategy-Proofness in the Object Allocation Problem with Non-Quasi-Linear Preferences," Games, MDPI, vol. 13(6), pages 1-24, November.
    8. Malik, Komal & Mishra, Debasis, 2021. "Pareto efficient combinatorial auctions: Dichotomous preferences without quasilinearity," Journal of Economic Theory, Elsevier, vol. 191(C).
    9. Di Feng, 2023. "Efficiency in Multiple-Type Housing Markets," Papers 2308.14989, arXiv.org, revised Dec 2023.
    10. Kazumura, Tomoya & Mishra, Debasis & Serizawa, Shigehiro, 2020. "Strategy-proof multi-object mechanism design: Ex-post revenue maximization with non-quasilinear preferences," Journal of Economic Theory, Elsevier, vol. 188(C).
    11. Mridu Prabal Goswami, 2024. "Strategy-proof Selling: a Geometric Approach," Papers 2406.12279, arXiv.org, revised Jul 2024.
    12. Yu Zhou & Shigehiro Serizawa, 2021. "Multi-object Auction Design Beyond Quasi-linearity: Leading Examples," ISER Discussion Paper 1116, Institute of Social and Economic Research, Osaka University.

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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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