On strategy-proofness and essentially single-valued cores: A converse result

In a general model of indivisible good allocation, S?nmez (1999) established that, whenever the core is nonempty for each preference profile, if an allocation rule is strategy-proof, individually rational and Pareto optimal, then the rule is a selection from the core correspondence, and the core correspondence must be essentially single-valued. This paper studies the converse claim of this result. I demonstrate that whenever the preference domain satisfies a certain condition of `richness', if the core correspondence is essentially single-valued, then any selection from the core correspondence is strategy-proof (even weakly coalition strategy-proof, in fact). In particular, on the domain of preferences in which each individual has strict preferences over his own assignments and there is no consumption externality, such an allocation rule is coalition strategy-proof. And on this domain, coalition strategy-proofness is equivalent to Maskin monotonicity, an important property in implementation theory. Received: 22 February 2000/Accepted: 22 January 2002 I am grateful to Ryo-ichi Nagahisa, Shinji Ohseto, Hiroshi Ono, Tomoichi Shinotsuka and Shigehiro Serizawa for valuable comments. And I am indebted to two anonymous referees for useful suggestions. Especially, I owe the present proof of Lemma 2 to one referee. I also thank Yukihiko Funaki, Atsushi Kajii, Mamoru Kaneko, Eiichi Miyagawa, Tatsuyoshi Saijo, Manimay Sengupta, Yves Sprumont, Yoshikatsu Tatamitani, Manabu Toda, Takashi Ui, Takehiko Yamato, Naoki Yoshihara and the participants of the seminars in Hokkaido University, Kansai University, ISER (Osaka University), Otaru University of Commerce and Tsukuba University. All errors are my own responsiblity.     

The dilemma of recognition: Administrative categories and cultural diversity

Governments around the world combat inequality by means of group-specific redistribution. Some pursue redistribution that benefits groups, but also wish to avoid accentuating or even recognizing group distinctions. This poses a dilemma that they try to resolve by adjusting the category system used to target redistribution. There are three types of adjustment: accommodation (the multicultural approach), denial (the ideal-typical liberal solution), and replacement (a compromise). In replacement the targets of redistributive policies are constructed to avoid accentuation or recognition of inconvenient group distinctions, but still allow redistribution that benefits these groups. Replacement is increasingly in demand around the world because the disadvantages of multiculturalism are becoming apparent while denial is hard to sustain in the face of group inequality. The actual effect of replacement is little researched and less understood, however. Does it resolve the dilemma of recognition? Two examples–India and Nigeria–where replacement has been tried ever since the 1950s cast doubt on its viability.     

Estimating rating transition probabilites with missing data

In this article we provide a rigorous treatment of one of the central statistical issues of credit risk management. GivenK-1 rating categories, the rating of a corporate bond over a certain horizon may either stay the same or change to one of the remainingK-2 categories; in addition, it is usually the case that the rating of some bonds is withdrawn during the time interval considered in the analysis. When estimating transition probabilities, we have thus to consider aK-th category, called withdrawal, which contains (partially) missing data. We show how maximum likelihood estimation can be performed in this setup; whereas in discrete time our solution gives rigorous support to a solution often used in applications, in continuous time the maximum likelihood estimator of the transition matrix computed by means of the EM algorithm represents a significant improvement over existing methods.     

Labor relations and technological change at Canadian Pacific Railway

There was a time in this fair land when the railroad did not run When the wild majestic mountains stood alone against the sun Long before the white man and long before the wheel When the green dark forest was too silent to be real For they looked into the future and what did they see They saw an iron road running from the sea to the sea Bringing the goods to a young growing land All up through the seaports and into their hands From “Canadian Railroad Trilogy” by Gordon Lightfoot The authors thank CPR managers and union officials representing CPR employees for their cooperation and patience in explaining the intricacies of the railroad industry. Special appreciation is extended to Jason Copping, Labour Relations Manager, for his facilitating our initial access to the company.     

The Texaco racial discrimination case and shareholder wealth

We analyze the wealth ejfects of the Texaco racial discrimination lawsuit both on the shareholders of Texaco and its major U.S. competitors. Employing a comprehensive data set which included every case docket entry and every Wall Street Journal article on the case as an experimental stimulus, our findings suggest that the overall cost of the case to Texaco shareholders exceeded $500 million, that Texaco's tribulations had little, if any, impact on the share prices of its major competitors, and that Wall Street Journal coverage of the case was highly correlated with significant changes in Texaco stock prices. This last finding provides significant support for Hite 's suppostion that newspaper editors “key ” on ex post stock price changes in selecting the events to be covered in the next day's edition. The authors are grateful to Kee Chung for helpful comments on earlier drafts and also acknowlege the help-ful assistance of the staff of the law library at the Cecil C. Humphreys School of Law at The University of Memphis.