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Strategy-proof club formation with indivisible club facilities
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Dutta, Bhaskar, Kar, Anirban and Weymark, John A. (2022) Strategy-proof club formation with indivisible club facilities. Review of Economic Design, 26 . pp. 261-284. doi:10.1007/s10058-021-00251-w ISSN 1434-4742.
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Official URL: http://dx.doi.org/10.1007/s10058-021-00251-w
Abstract
We investigate the strategy-proof provision and financing of indivisible club good facilities when individuals are subject to congestion costs that are non-decreasing in the number of other club members and in a private type parameter. An allocation rule specifies how the individuals are to be partitioned into clubs and how the costs of the facilities are to be shared by club members as a function of the types. We show that some combinations of our axioms are incompatible when congestion costs are continuous and strictly increasing in the type parameter, but that all of them are compatible if congestion costs are dichotomous and there is equal cost sharing. We present a number of examples of allocation rules with equal cost sharing and determine which of our axioms they satisfy when the congestion cost is linear in the type parameter. We also show that using iterative voting on ascending size to determine a club partition is not, in general, strategy-proof when each facility’s cost is shared equally.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HM Sociology |
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| Divisions: | Faculty of Social Sciences > Economics | ||||||||
| Library of Congress Subject Headings (LCSH): | Strategic planning, Clubs, Economic theory, Clubs -- Management, Public goods, Economics -- Sociological aspects | ||||||||
| Journal or Publication Title: | Review of Economic Design | ||||||||
| Publisher: | Springer | ||||||||
| ISSN: | 1434-4742 | ||||||||
| Official Date: | September 2022 | ||||||||
| Dates: |
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| Volume: | 26 | ||||||||
| Page Range: | pp. 261-284 | ||||||||
| DOI: | 10.1007/s10058-021-00251-w | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Reuse Statement (publisher, data, author rights): | This is a post-peer-review, pre-copyedit version of an article published in Review of Economic Design. The final authenticated version is available online at: https://doi.org/10.1007/s10058-021-00251-w | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 18 May 2021 | ||||||||
| Date of first compliant Open Access: | 6 May 2022 |
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