Efficient Strategy-Proof Exchangeand Minimum Consumption Guarantees
Serizawa, Shigehiro
Weymark, John A.
:
2002
Abstract
For exchange economies with classical economic preferences, it is shown that any strategy-proof social choice function that selects Pareto optimal outcomes cannot guarantee everyone a consumption bundle bounded away from the origin. This result demonstrates that there is a fundamental conflict between efficiency and distributional goals in exchange economies if the social choice rule is required to be strategy-proof.