Strategy-proofness and efficiency in a simple production economy

Sungwhee Shin, Sang Chul Suh

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


We consider an economy with two agents, "firm" and "worker." The firm owns a technology which transforms a single input into a single output and the worker owns a limited amount of input good, for example, leisure. The firm is interested in profit measured in terms of output and the worker's preferences are defined over the input-output space. Manipulability comes not only from a lack of information about the (worker's) preferences but also about the technology. With a possibility for manipulation, can we still obtain efficient allocations? We show that there is no allocation mechanism which is Pareto efficient, strategy-proof, and non-dictatorial.

Original languageEnglish
Pages (from-to)523-532
Number of pages10
JournalSocial Choice and Welfare
Issue number3
StatePublished - 2000


Dive into the research topics of 'Strategy-proofness and efficiency in a simple production economy'. Together they form a unique fingerprint.

Cite this