Inefficiency of strategy-proof rules for pure exchange economies
Clearly, reading the title of this paper recalls an old result of Hurwicz, which he had proved in 1972 for pure exchange economies with two agents and two goods. The aim of this paper is, to extend this result to any finite number of agents and goods. In an introduction the author explains carefully the situation in this field. Then a long and not so easy proof follows (with a lot of hints and remarks). Shortly said, he proved, that for pure exchange economies with any number of agents and goods there is no strategy-proof Pareto-efficient and individually rational (or symmetric) rule on the class of classical, homothetic and smooth preferences. The paper is completed by a hint to Zhou's conjecture (concerning non-inversely-dictatorial rules).
scientific article; zbMATH DE number 1891518
scientific article