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Economic Theory

, Volume 50, Issue 2, pp 463–488 | Cite as

The Pareto-dominant strategy-proof and fair rule for problems with indivisible goods

  • Onur Kesten
  • Ayşe YazıcıEmail author
Research Article

Abstract

We study the problem of allocating a set of indivisible goods among a set of agents when monetary transfers are not allowed. We consider two interesting cases of this problem: (1) the supply of each object is exactly one; and (2) the supply of an object may be greater than one. Our central requirements are strategy-proofness and ex post fairness. We propose a particular rule satisfying strategy-proofness and no-envy (as well as equal treatment of equals). For the first case, it Pareto dominates any other rule satisfying strategy-proofness and equal treatment of equals. For the second case, it Pareto dominates any other rule satisfying strategy-proofness and no-envy.

Keywords

Indivisible goods Strategy-proofness Fairness No-envy 

JEL Classification

C71 C78 D71 D78 

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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  1. 1.Tepper School of BusinessCarnegie Mellon UniversityPittsburghUSA
  2. 2.Department of EconomicsUniversity of RochesterRochesterUSA

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