Abstract
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 language | English |
|---|---|
| Pages (from-to) | 523-532 |
| Number of pages | 10 |
| Journal | Social Choice and Welfare |
| Volume | 17 |
| Issue number | 3 |
| DOIs | |
| State | Published - 2000 |
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