The genericity of obvious manipulations under the Egalitarian Walrasian rule when preferences are linear

Pierre Bardier & Dong-Xuan Bach & Van Quy Nguyen (University of Évry Paris-Saclay)

 

We study the incentives properties of one of the central solutions to the problem

of allocating divisible commodities among equally entitled agents, namely the Egali-

tarian Walrasian rule (EW), when agents have linear preferences. The EW rule being

manipulable on this domain, we ask whether it is, at least, immune to obvious ma-

nipulations, in the sense of Troyan and Morrill (2020). Unfortunately, the answer is

negative. This manipulability result is generic since we show that any agent for whom

all the commodities are desirable has an obvious manipulation.

Keywords: Fair allocation, obvious manipulations, competitive equilibrium, Egalitarian

Walrasian rule, linear preferences.

JEL classification: C72; D63; D71; D82.