An axiomatic analysis of dynamic simple allocation problems

Official URL: http://192.168.1.20/record=b1304450 (Table of Contents)

We look for a ''good'' solution to the following problem: a perfectly divisible commodity is to be allocated in each period among a set of agents each having an exogenous characteristic vector and a complete, transitive, continuous and monotonic preference relation on his consumption. On this class we analyze the implications of well-known properties such as Pareto optimality, no-envy, strategy proofness and no-manipulation via characteristics. We particularly find that although the Walrasian rule is always manipulable via destruction of characteristics, manipulation can be prevented under the constrainted Walrasian rule if the initial allocation is determined by a dictatorial rule.