Equity in strategic exchange

Fuente: arXiv
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Main Authors: Liu, Peng, Zeng, Huaxia
Format: Preprint
Published: 2025
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author Liu, Peng
Zeng, Huaxia
author_facet Liu, Peng
Zeng, Huaxia
contents New fairness notions aligned with the merit principle are proposed for designing exchange rules. We show that for an obviously strategy-proof, efficient and individually rational rule, (i) an agent receives her favorite object when others unanimously perceive her object the best, if and only if preferences are single-peaked, and (ii) an upper bound on fairness attainable is that, if two agents' objects are considered the best by all agents partitioned evenly into two groups, it is guaranteed that one, not both, gets her favorite object. This on the one hand reveals the importance of single-peaked preferences in a private economy and provides a support of "Gul's Conjecture", and on the other hand also indicates an unambiguous trade-off between incentives and fairness in design of exchange rules.
format Preprint
id arxiv_https___arxiv_org_abs_2504_05678
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Equity in strategic exchange
Liu, Peng
Zeng, Huaxia
Theoretical Economics
New fairness notions aligned with the merit principle are proposed for designing exchange rules. We show that for an obviously strategy-proof, efficient and individually rational rule, (i) an agent receives her favorite object when others unanimously perceive her object the best, if and only if preferences are single-peaked, and (ii) an upper bound on fairness attainable is that, if two agents' objects are considered the best by all agents partitioned evenly into two groups, it is guaranteed that one, not both, gets her favorite object. This on the one hand reveals the importance of single-peaked preferences in a private economy and provides a support of "Gul's Conjecture", and on the other hand also indicates an unambiguous trade-off between incentives and fairness in design of exchange rules.
title Equity in strategic exchange
topic Theoretical Economics
url https://arxiv.org/abs/2504.05678