Characterizations of strategy-proof and fair mechanisms for allocating indivisible goods (Q2505520)

The problem of allocating of indivisible goods is considered here. Without imposing budget balance two characterizations for the case of homogeneous indivisible goods and money are presented. First, the set of strategy-proof and envy-free mechanisms are characterized. Second, the Pareto undominated subsets in the set of strategy-proof and envy-free mechanisms are identified. The latter result improves the result by Svensson (2004) who provided a characterization in the case of heterogeneous indivisible goods and money.