Stability and Institutional power in the Allocation of Indivisible Goods
This paper studies the allocation of a fixed number of an indivisible and homo-
geneous commodity among a set of agents. Each agent possesses a weak preference
relation over the set of feasible assignments they can receive. Unlike classical
models, we examine settings where agents hold asymmetric institutional power,
allowing dissatisfied coalitions to challenge or reject a proposed allocation. In this
framework, we introduce a concept of stability that generalizes Pareto optimality
and ensures conflict avoidance. We establish necessary and sufficient conditions
for the existence of stable allocations independently of agents’ preferences, and
characterize them when agent preferences are single-peaked or single-dipped.
Key words: Allocation problem, stability, blocking coalitions, single-peaked
preferences, single-dipped preferences.