Efficient strategy-proof exchange and minimum consumption guarantees. (Q1812176): Difference between revisions

The authors consider an exchange economy with individual preferences having the classical properties (continuity, strict convexity (strict) monotonicity). It is shown that a strategy-proof social choice function that selects Pareto optimal outcomes cannot guarantee every agent a consumption bundle bounded away from the origin. This demonstrates that, given strategy-proofness, there is a conflict between efficiency and distributional goals.