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Unanimity and Local Incentive Compatibility

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  • Miho Hong

    (Yonsei University)

  • Semin Kim

    (Yonsei University)

Abstract

We study the relationship between unanimity and local incentive constraints of deterministic social choice functions (or voting mechanisms) . We consider a standard Bayesian environment where agents have private and strict preference orderings on a finite set of alternatives. We show that with independent and generic priors, locally ordinal Bayesian incentive compatibility of a social choice function combined with unanimity implies the tops-only property. Also, assuming unanimity invokes the sufficiency of local incentive constraints for full incentive constraints. Furthermore, unanimity helps our results hold in a broad class of domains | a few of its constituents being the unrestricted domain, the single-peaked domain, the single-dipped domain and some other connected domains.

Suggested Citation

  • Miho Hong & Semin Kim, 2018. "Unanimity and Local Incentive Compatibility," Working papers 2018rwp-138, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2018rwp-138
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    References listed on IDEAS

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    1. Sato, Shin, 2013. "A sufficient condition for the equivalence of strategy-proofness and nonmanipulability by preferences adjacent to the sincere one," Journal of Economic Theory, Elsevier, vol. 148(1), pages 259-278.
    2. John A. Weymark, 2008. "Strategy‐Proofness and the Tops‐Only Property," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(1), pages 7-26, February.
    3. Holmstrom, Bengt & Myerson, Roger B, 1983. "Efficient and Durable Decision Rules with Incomplete Information," Econometrica, Econometric Society, vol. 51(6), pages 1799-1819, November.
    4. Yaron Azrieli & Semin Kim, 2014. "Pareto Efficiency And Weighted Majority Rules," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 1067-1088, November.
    5. Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
    6. Mishra, Debasis, 2016. "Ordinal Bayesian incentive compatibility in restricted domains," Journal of Economic Theory, Elsevier, vol. 163(C), pages 925-954.
    7. Gabriel Carroll, 2012. "When Are Local Incentive Constraints Sufficient?," Econometrica, Econometric Society, vol. 80(2), pages 661-686, March.
    8. Yaron Azrieli & Semin Kim, 2014. "Pareto Efficiency And Weighted Majority Rules," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1067-1088, November.
    9. Dipjyoti Majumdar & Arunava Sen, 2004. "Ordinally Bayesian Incentive Compatible Voting Rules," Econometrica, Econometric Society, vol. 72(2), pages 523-540, March.
    10. H. Moulin, 1980. "On strategy-proofness and single peakedness," Public Choice, Springer, vol. 35(4), pages 437-455, January.
    11. Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
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    Cited by:

    1. Sulagna Dasgupta & Debasis Mishra, 2022. "Ordinal Bayesian incentive compatibility in random assignment model," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 651-664, December.
    2. Sulagna Dasgupta & Debasis Mishra, 2020. "Ordinal Bayesian incentive compatibility in random assignment model," Discussion Papers 20-06, Indian Statistical Institute, Delhi.

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    More about this item

    Keywords

    Unanimity; Incentive compatibility; Local incentive compatibility; Tops-only property; Connected domains;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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