Maximal manipulation of envy-free solutions in economies with indivisible goods and money

Yuji Fujinaka and Takuma Wakayama

Journal of Economic Theory, 2015, vol. 158, issue PA, 165-185

Abstract: We consider the problem of the fair allocation of indivisible goods and money with non-quasi-linear preferences. The purpose of the present study is to examine strategic manipulation under envy-free solutions. We show that under a certain domain-richness condition, each individual obtains the welfare level of his “optimal” envy-free allocation by maximally manipulating the solutions. This maximal manipulation theorem is helpful in analyzing the set of Nash equilibrium allocations in the direct revelation games associated with a given envy-free solution: if an envy-free solution satisfies a mild condition, the set of Nash equilibrium allocations in its associated direct revelation game coincides with that of envy-free allocations.

Keywords: Envy-freeness; Indivisible good; Manipulation; Nash implementation (search for similar items in EconPapers)
JEL-codes: C72 C78 D63 D71 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:158:y:2015:i:pa:p:165-185

DOI: 10.1016/j.jet.2015.03.014

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