Influence in Private-Good Economies
Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie
Many private-good allocation rules allow for certain agents - when they change the preferences they report to the rule - to affect the welfare of other agents without affecting their own welfare. Classic examples are the agent-proposing Gale-Shapley rule for matching (Gale and Shapley, 1962) and the Vickrey rule for single-object auctions (Vickrey, 1961). We propose a new methodology, based on the study of this influence that agents might have on each other's welfare, that furthers our understanding of such rules. Moreover, we use structural conditions on influence to explain why some rules satisfy normatively desirable properties such as Pareto-efficiency, stability, weak Maskin monotonicity, non-wastefulness, and weak group-strategy-proofness, while others do not. Illustrative applications include the efficiency-adjusted deferred acceptance mechanism for matching (Kesten, 2010), and generalised absorbing top-trading-cycles rules in object-allocation models (Aziz and Keijzer, 2011).
Keywords: Private-goods allocation; welfare; strategy-proofness; influence; matching; single-object auctions; object-allocation; non-bossiness; Pareto-efficiency; stability (search for similar items in EconPapers)
JEL-codes: C78 D71 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-des and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:18.05
Access Statistics for this paper
More papers in Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie Université de Lausanne, Faculté des HEC, Département d’économie, Internef, CH-1015 Lausanne. Contact information at EDIRC.
Bibliographic data for series maintained by Gaëlle Sarda ().