Strategy-Proof and Anonymous Allocation Rules of Indivisible Goods: A New Characterization of Vickrey Allocation Rule
12 Pages Posted: 7 May 2006
Date Written: March 3, 2006
We consider situations where a society allocates a finite units of an indivisible good among agents, and each agent receives at most one unit of the good. For example, imagine that a government allocates a fixed number of licences to private firms, or imagine that a government distributes equally divided lands to households. We show that the Vickrey allocation rule is the unique allocation rule satisfying strategy-proofness, anonymity and individual rationality.
Keywords: strategy-proofness, anonymity, indivisible good, Vickrey allocation rule
JEL Classification: D44, C78, D71, D61, D82
Suggested Citation: Suggested Citation