Manipulation of Preferences and Relative Utilitarianism
UCSD Economics Discussion Paper No. 98-17
19 Pages Posted: 5 Mar 1999
Date Written: July 1998
Given n agents with von Neumann-Morgenstern utility functions who wish to divide m commodities, consider the n-person noncooperative game with strategies consisting of concave, increasing von Neumann-Morgenstern utility functions, and whose outcomes are the relative utilitarian solution. It is shown that any constrained equal-income competitive equilibrium allocation for the true utilities is a Nash equilibrium outcome for the noncooperative game. Conditions are presented under which these are the only pure strategy equilibrium outcomes.
JEL Classification: C7, D5, D7
Suggested Citation: Suggested Citation