Note on social choice allocation in exchange economies with many agents

Takeshi Momi

Journal of Economic Theory, 2013, vol. 148, issue 3, 1237-1254

Abstract: We show that in pure exchange economies there exists no Pareto-efficient and strategy-proof allocation mechanism that ensures positive consumption for all agents. We also show that a Pareto-efficient, strategy-proof, and non-bossy allocation mechanism is dictatorial. We further show that in three-agent economies, the allocation given by a Pareto-efficient, strategy-proof, and non-dictatorial mechanism depends only on one agentʼs preference who is always allocated zero consumption. That is, in three-agent economies, Zhouʼs (1991) [14] conjecture is true and any Pareto-efficient and strategy-proof mechanism is of Satterthwaite and Sonnenscheinʼs (1981) [10] type.

Keywords: Social choice; Strategy-proofness; Pareto-efficiency; Exchange economy (search for similar items in EconPapers)
JEL-codes: D71 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:148:y:2013:i:3:p:1237-1254

DOI: 10.1016/j.jet.2012.10.008

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