An extreme point characterization of strategy-proof and unanimous probabilistic rules over binary restricted domains
Hans J. M. Peters, S. Roy, Soumyarup Sadhukhan, A.J.A. Storcken · RePEc: Research Papers in Economics · 2016
We show that every strategy-proof and unanimous probabilistic rule on a binary restricted domain has binary support, and is a probabilistic mixture of strategy-proof and unanimous deterministic rules. Examples of binary restricted domains are single-dipped domains, which are of interest when considering the location of public bads. We also provide an extension to infinitely many alternatives.