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Strategy-proof location of public facilities

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Abstract

Agents frequently have di fferent opinions on where to locate a public facility. While some agents consider the facility a good and prefer to have it nearby, others dislike it and would like to see it built far away from their own locations. To aggregate agents' preferences in these situations, we propose a new preference domain according to which each agent is allowed to have single-peaked or single-dipped preferences on the location of the facility, but in such a way that the peak or dip is situated in her own location. We characterize all strategy-proof rules in this general framework and show that they are also group strategy-proof. Finally, we characterize for some focal cases the rules that additionally satisfy Pareto efficiency.

Suggested Citation

  • Jorge Alcalde Unzu & Marc Vorsatz, 2015. "Strategy-proof location of public facilities," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 1502, Departamento de Economía - Universidad Pública de Navarra.
    • Handle: RePEc:nav:ecupna:1502
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    Cited by:

    1. Jorge Alcalde-Unzu & Marc Vorsatz, 2023. "The structure of strategy-proof rules," Papers 2304.12843, arXiv.org.
    2. Lars Ehlers, 2022. "Three public goods and lexicographic preferences: replacement principle," Review of Economic Design, Springer;Society for Economic Design, vol. 26(3), pages 367-384, September.
    3. Makoto Hagiwara & Hirofumi Yamamura, 2020. "Upper set rules with binary ranges," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 54(4), pages 657-666, April.
    4. Roy, Souvik & Sadhukhan, Soumyarup, 2021. "A unified characterization of the randomized strategy-proof rules," Journal of Economic Theory, Elsevier, vol. 197(C).
    5. Gopakumar Achuthankutty & Souvik Roy, 2018. "Dictatorship on top-circular domains," Theory and Decision, Springer, vol. 85(3), pages 479-493, October.
    6. Alcalde-Unzu, Jorge & Gallo, Oihane & Vorsatz, Marc, 2024. "Strategy-proofness with single-peaked and single-dipped preferences," Games and Economic Behavior, Elsevier, vol. 147(C), pages 107-127.
    7. Dietzenbacher, Bas & Tamura, Yuki, 2023. "Fair and efficient allocations when preferences are single-dipped," Research Memorandum 009, Maastricht University, Graduate School of Business and Economics (GSBE).
    8. William Thomson, 2023. "Where should your daughter go to college? An axiomatic analysis," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 60(1), pages 313-330, January.
    9. Jorge Alcalde-Unzu & Oihane Gallo & Marc Vorsatz, 2023. "Strategy-proofness with single-peaked and single-dipped preferences," Papers 2303.05781, arXiv.org, revised Mar 2024.

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    More about this item

    Keywords

    Single-peaked preferences; single-dipped preferences; social choice rule; strategy-proofness; Pareto efficiency.;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other

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