TY - JOUR
T1 - Strategy-proofness and efficiency in a simple production economy
AU - Shin, Sungwhee
AU - Suh, Sang Chul
PY - 2000
Y1 - 2000
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0034382005&partnerID=8YFLogxK
U2 - 10.1007/s003550050176
DO - 10.1007/s003550050176
M3 - Article
AN - SCOPUS:0034382005
SN - 0176-1714
VL - 17
SP - 523
EP - 532
JO - Social Choice and Welfare
JF - Social Choice and Welfare
IS - 3
ER -