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Strategy-proof package assignment

Author

Listed:
  • Erlanson, Albin

    (Department of Economics)

  • Szwagrzak, Karol

    (Department of Business and Economics)

Abstract

We examine the strategy-proof allocation of multiple divisible and indivisible resources; an application is the assignment of packages of tasks, workloads, and compensations among the members of an organization. We find that any allocation mechanism obtained by maximizing a separably concave function over a polyhedral extension of the set of Pareto-efficient allocations is strategy-proof. Moreover, these are the only strategy-proof and unanimous mechanisms satisfying a coherence property and responding well to changes in the availability of resources. These mechanisms generalize the parametric rationing mechanisms (Young, 1987), some of which date back to the Babylonian Talmud.

Suggested Citation

  • Erlanson, Albin & Szwagrzak, Karol, 2014. "Strategy-proof package assignment," Discussion Papers on Economics 5/2014, University of Southern Denmark, Department of Economics.
    • Handle: RePEc:hhs:sdueko:2014_005
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    More about this item

    Keywords

    Package assignment; Indivisible objects; Strategy-proofness;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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