A Note on the Incompatibility of Strategy-proofness and Pareto-optimality in Quasi-linear Settings with Public Budget Constraints

Ron Lavi, Marina May

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)


We show that any deterministic mechanism, for allocating identical items that are complements to budget-constrained bidders, cannot simultaneously satisfy individual-rationality, strategy-proofness, Pareto-efficiency, and no-positive-transfers. This holds even for two bidders, two items, and commonly-known budgets, and generalizes to richer settings.
Original languageEnglish
Pages (from-to)100-103
JournalEconomics Letters
Issue number1
Publication statusPublished - 1 Apr 2012

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