(Minimally) 'epsilon'-incentive compatible competitive equilibria in economies with indivisibilities
Article [Version of Record]
Is part ofCahier de recherche ; no. 2012-03.
Publisher(s)Université de Montréal. Département de sciences économiques.
We consider competitive and budget-balanced allocation rules for problems where a number of indivisible objects and a fixed amount of money is allocated among a group of agents. In 'small' economies, we identify under classical preferences each agent's maximal gain from manipulation. Using this result we find the competitive and budget-balanced allocation rules which are minimally manipulable for each preference profile in terms of any agent's maximal gain. If preferences are quasi-linear, then we can find a competitive and budget-balanced allocation rule such that for any problem, the maximal utility gain from manipulation is equalized among all agents.