A Note on the Incompatibility of Strategy-proofness and Pareto-optimality in Quasi-linear Settings with Public Budget Constraints

Ron Lavi, Marina May

OAI: oai:purehost.bath.ac.uk:openaire_cris_publications/d4d55903-9943-45f4-8b34-f831af81d769

We show that any deterministic mechanism, for allocating identical items that are complements to budget-constrained bidders, cannot simultaneously satisfy individual-rationality, strategy-proofness, Pareto-efficiency, and no-positive-transfers. This holds even for two bidders, two items, and commonly-known budgets, and generalizes to richer settings.