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Strategy-proof allocation problem with hard budget constraints and income effects: weak efficiency and fairness

Author

Listed:
  • Yuya Wakabayashi

    (JSPS Research Fellow (DC2), Graduate School of Economics, Osaka University)

  • Ryosuke Sakai

    (School of Engineering, Tokyo Institute of Technology)

  • Hiroki Shinozaki

    (Hitotsubashi Institute for Advanced Study, Hitotsubahi University)

Abstract

We consider the single-object allocation problem with monetary transfers. Agents have hard budgets and their utility functions may exhibit income effects. We characterize truncated Vickrey rules with endogenous reserve prices by constrained efficiency or weak envy-freeness for equals, in addition to individual rationality, no subsidy for losers, and strategy-proofness. The same characterization result hold even if we replace weak envy freeness for equals with other fairness conditions; equal treatment of equals, envy-freeness, and anonymity in welfare.

Suggested Citation

  • Yuya Wakabayashi & Ryosuke Sakai & Hiroki Shinozaki, 2024. "Strategy-proof allocation problem with hard budget constraints and income effects: weak efficiency and fairness," OSIPP Discussion Paper 24E003, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:24e003
    as

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    File URL: https://www.osipp.osaka-u.ac.jp/archives/DP/2024/DP2024E003.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Single-object allocation problem; Non-quasi-linear preference; Hard budget constraint; Efficiency; Fairness; Strategy-proofness; Vickrey rule with reserve prices;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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