Eliciting Preferences to Assign Positions and Compensation, Games and Economic Behavior
We describe strategy-proof rules for economies where an agent is assigned a position (e.g., a job) plus some of a divisible good. For the 2-agent-2-position case we derive a robust characterization. For the multi-agent-position case, many "arbitrary" such rules exist, so we consider additional requirements. By also requiring coalitional strategy-proofness or nonbossiness, the range of a solution is restricted to the point that such rules are not more complex than those for the Shapley-Scarf housing model (no divisible good). Third, we show that essentially only constant solutions are immune to manipulations involving "bribes." Finally, we demonstrate a conflict between efficiency and strategy-proofness. The results extend to models (without externalities) in which agents share positions.
Schummer, James. 2000. Eliciting Preferences to Assign Positions and Compensation. Games and Economic Behavior. 30(2): 293-318.