Efficient and strategy-proof allocation mechanisms in economies with many goods

Theoretical Economics, Volume 12, Number 3 (September 2017)

Theoretical Economics 12 (2017), 1267–1306

Efficient and strategy-proof allocation mechanisms in economies with many goods

Takeshi Momi

Abstract

In this paper, we show that in pure exchange economies where the number of goods equals or exceeds the number of agents, any Pareto-efficient and strategy-proof allocation mechanism always allocates the total endowment to some single agent even if the receivers vary.

Keywords: Social choice, strategy-proofness, Pareto efficiency, exchange economy

JEL classification: D71

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