Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94302
Authors: 
Ma, Jinpeng
Year of Publication: 
1998
Series/Report no.: 
Working Papers, Department of Economics, Rutgers, The State University of New Jersey 1998-10
Abstract: 
Consider a society with a finite number of individuals. A coalition structure is a partition of the set of individuals. Each individual has personal preferences over the set of all coalition structures. We study the strategy proof core and von Neumann and Morgenstern (vN&M) solutions. A roommate problem is a problem in which each coalition in each coalition structure contains at most two members. We show that as long as the core is single-valued, the core is coalitionally strategy proof. Moreover the core mechanism is completely characterized by three properties: strategy proofness, Pareto optimality and individual rationality, in the domain with single-valued core. The single-valued core defines the largest domain one may obtain such a mechanism. We show in an example that the single-valued core is manipulable if coalition structures allow more than two members. Nevertheless we show that the single-valued vN&M solution is coalitionally stratey proof and it is individually rational and Pareto optimal. In fact the vN&M solution is the only mechanism with the three properties in the domain with single-valued vN&M solution.
Subjects: 
the core
JEL: 
D40
Document Type: 
Working Paper

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