Serial Dictatorship Mechanisms with Reservation Prices

Abstract

We propose a new set of mechanisms, which we call serial dictatorship mechanisms with reservation prices for the allocation of one indivisible good. We show that a mechanism ' satis es minimal tradability, individual rationality, strategy-proofness, consistency, and non wasteful tie-breaking if and only if there exists a reservation price vector r and a priority ordering such that ' is a serial dictatorship mechanism with reservation prices based on r and . We obtain a second characterization by replacing individual rationality with non-imposition. In both our characterizations r, , and ' are all found simultaneously and endogenously from the properties. In addition, we show that in our ..