On the manipulability of competitive equilibrium rules in many-to-many buyer–seller markets

David Perez-Castrillo and Marilda Sotomayor ()

International Journal of Game Theory, 2017, vol. 46, issue 4, No 12, 1137-1161

Abstract: Abstract We analyze the manipulability of competitive equilibrium allocation rules for the simplest many-to-many extension of Shapley and Shubik’s (Int J Game Theory 1:111–130, 1972) assignment game. First, we show that if an agent has a quota of one, then she does not have an incentive to manipulate any competitive equilibrium rule that gives her her most preferred competitive equilibrium payoff when she reports truthfully. In particular, this result extends to the one-to-many (respectively, many-to-one) models the Non-Manipulability Theorem of the buyers (respectively, sellers), proven by Demange (Strategyproofness in the assignment market game. École Polytechnique, Laboratoire d’Économetrie, Paris, 1982), Leonard (J Polit Econ 91:461–479, 1983), and Demange and Gale (Econometrica 55:873–888, 1985) for the assignment game. Second, we prove a “General Manipulability Theorem” that implies and generalizes two “folk theorems” for the assignment game, the Manipulability Theorem and the General Impossibility Theorem, never proven before. For the one-to-one case, this result provides a sort of converse of the Non-Manipulability Theorem.

Keywords: Matching; Competitive equilibrium; Optimal competitive equilibrium; Manipulability; Competitive equilibrium rule; C78; D78 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s00182-017-0573-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jogath:v:46:y:2017:i:4:d:10.1007_s00182-017-0573-y

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/182/PS2

DOI: 10.1007/s00182-017-0573-y

Access Statistics for this article

International Journal of Game Theory is currently edited by Shmuel Zamir, Vijay Krishna and Bernhard von Stengel

More articles in International Journal of Game Theory from Springer, Game Theory Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().