, Volume 8, Issue 3, pp 247-254

Inefficiency of strategy-proof allocation mechanisms in pure exchange economies

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Abstract

In this paper I prove that in the standard model of 2×n (n≧2) pure exchange economies there is no allocation mechanism that is efficient, non-inversely-dictatorial, and strategy-proof. This strengthens two previous results on this subject by Hurwicz and by Dasgupta, Hammond, and Maskin.

I thank Alvin Klevorick, William Thomson, and an anonymous referee of the journal for many helpful comments.