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Preference Manipulation Leads To The Uniform Rule

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TOPIC: 

Preference Manipulation Leads to the Uniform Rule







In the division problem with single-peaked preferences, it is well known that the uniform rule is robust to strategic manipulation. Under efficiency and symmetry, it is also the unique strategy-proof rule (Sprumont, 1991; Ching, 1994). We conversely analyze the consequences of strategic manipulation for some families of rules satisfying natural requirements. Given a rule, we interpret its associated direct revelation game as a manipulation game, and we characterize its equilibrium allocations. Our results are unequivocal: for any rule, at each preference profile there is a unique (strong) Nash equilibrium allocation and it is the uniform allocation for the profile. In other words, attempts to manipulate lead to the uniform rule.

 



 

William Thomson

Rochester University

Game Theory, Theory of Equity, Mechanism Design

10 March 2016 (Thursday)

4pm - 5.30pm

Meeting Room 5.1, Level 5

School of Economics 

Singapore Management University

90 Stamford Road

Singapore 178903