Strategy-proof compromises

Peter Postl

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We study strategy-proof decision rules in the variant of the canonical public good model proposed by Borgers and Postl (2009). In this setup, we fully characterize the set of budget balanced strategy-proof deterministic mechanisms, which are simple threshold rules. For smooth probabilistic mechanisms, we provide a necessary and sufficient condition for dominant strategy implementation. When allowing for discontinuities in the mechanism, our necessary condition remains valid, but additional conditions must hold for sufficiency. We also show that, among ex
post efficient decision rules, only dictatorial ones are strategy-proof. While familiar in spirit, this result is not the consequence of any known result in the literature.
Original languageEnglish
Article number20
Number of pages37
JournalThe B.E. Journal of Theoretical Economics
Issue number1
Early online date15 Jun 2011
Publication statusPublished - 15 Jun 2011


  • compromise
  • public good provision
  • dominant strategy implementation
  • strategyproof
  • dictatorship


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