Second-best efficiency of allocation rules: strategy-proofness and single-peaked preferences with multiple commodities (Q2434962): Difference between revisions

This article studies resource allocation problems in economies with perfectly divisible multiple commodities where preferences are single-peaked, in the context of obtaining strategy-proof allocation rules. The authors begin with a description of the inherent incompatibility between Pareto efficiency, strategy-proofness and non-dictatorship. They then proceed to investigate the possible existence of rules that are not Pareto-efficient as such, but are not Pareto-dominated by any other set of rules that is strategy-proof. They derive one such egalitarian rule and prove its existence and properties in an extensive appendix to the paper.