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Binary mechanism for the allocation problem with single-dipped preferences

Fumiya Inoue () and Hirofumi Yamamura ()
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Fumiya Inoue: Tokyo Institute of Technology
Hirofumi Yamamura: Komazawa University

Social Choice and Welfare, 2023, vol. 60, issue 4, No 7, 647-669

Abstract: Abstract In this study, we consider the problem of fairly allocating a fixed amount of a perfectly divisible resource among agents with single-dipped preferences. It is known that any efficient and strategy-proof rule violates several fairness requirements. We alternatively propose a simple and natural mechanism, in which each agent announces only whether he or she demands a resource and the resource is divided equally among the agents who demand it. We show that any Nash equilibrium allocation of our mechanism belongs to the equal-division core. In addition, we show that our mechanism is Cournot stable. In other words, from any message profile, any path of better-replies converges to a Nash equilibrium.

Date: 2023
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DOI: 10.1007/s00355-022-01427-1

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