Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

5. This problem revisits the notion of individual rationality in public endowment problems with priorities, when not all individuals are acceptable to all objects. Suppose

image text in transcribedimage text in transcribed
5. This problem revisits the notion of individual rationality in public endowment problems with priorities, when not all individuals are acceptable to all objects. Suppose that 5 public houses (objects) must be allocated among a group of 5 families (individuals), and imagine that the following tables describe rankings and priorities, where f denotes a generic family, and h a generic house: Pr; Pf; Pr, Pr: 113 113 h1 1'12 h2 h1 112 h4 h, hl 1'12 111 113 115 1'13 Remember that objects not listed on rankings, or individuals not listed on priorities, are considered unacceptable. One way to interpret these tables is to imagine that they capture, implicitly, some heterogeneity among the different houses (e.g., number of rooms) and families [e.g., number of members in a household.) Consider the following alternative definition of individual rationality (IR), termed \"IR for all:" Definition 1. An assignment H is IR for all if either pr 2 901" HrPfoor every f and either H... = (350?" phIEthor every 11, where Eh denotes the priority of house 11. In words, "IR for all" requires that no individual and object receives an assignment that is unacceptable. a. Is "IR for all" stronger or weaker than IR? i.e., must an assignment that is IR also be "IR for all" or the other way around? Why? b. Does Serial Dictatorship (SD) satisfy "IR for all"? i.e., does SD produce an assignment that is "IR for all" for every order of individuals? Why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management The Managerial Process

Authors: Eric W Larson, Clifford F. Gray

8th Edition

1260570436, 978-1260570434

Students also viewed these Economics questions