ISSN:
1434-4750
Keywords:
JEL classification:C72, D71, D82, H41
;
Key words:Groves mechanisms, dominant strategy implementation
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract. This paper provides two theorems which characterize the domains of valuation functions for which there exist Pareto efficient and truth dominant strategy mechanisms (balanced Groves mechanisms). Theorem 1 characterizes the existence of balanced Groves mechanisms for a general class of valuation functions. Theorem 2 provides new balance-permitting domains of valuation functions by reducing the problem of solving partial differential equations to the problem of solving a polynomial function. It shows that a balanced Groves mechanism exists if and only if each valuation function in the family under consideration can be obtained by solving a polynomial function with order less than $n-1$ , where n is the number of individuals.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/s100580050034
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