A family of incentive-compatible and non-subsidizing optimal resource allocation problems

Abstract

This paper provides a structure unifying several recent results on an incentive optimal resource allocation problem. They include an incentive-compatible modification of the Heal Algorithm, a generalization of it allowing the formation of secret coalitions and a class of center-free resource allocation algorithms as special cases. Our framework encompasses these earlier results and allows us to characterize a large class of incentive-compatible and non-subsidizing optimal resource allocation algorithms.