Strategy-Proofness and Arrow's Conditions 1: A Strict Voting Procedure with at Least Three Possible Outcomes Is Strategy-Proof Iff It Is DictatorialResearch Paper
Motivation
A committee that chooses one alternative by voting would like a voting procedure under which no member can gain by misreporting their preferences. Such a procedure is called strategy-proof. Gibbard (Econometrica 41, 1973) and Satterthwaite (J. Econ. Theory 10, 1975) proved independently that, once at least three outcomes are possible, the only strategy-proof procedures are dictatorial. The result is the starting point of the theory of strategy-proof mechanisms: it is why mechanism design restricts preference domains (single-peaked preferences, quasi-linear utilities) or allows randomization.
This mission formalizes Theorem 1 of Satterthwaite's paper, in the version circulated as Northwestern University CMS-EMS Discussion Paper No. 122 (revised December 12, 1974). Its formulation has one feature that the textbook version lacks: the hypothesis is on the range of the procedure, not on the whole alternative set, and the dictatorship is accordingly relative to that range.
Setting
A committee has a finite set of individuals and a finite set of alternatives. In a strict committee every individual's ballot is a strong order on , a ranking without ties; means that ranks strictly above . The set of strong orders is , and a ballot set is .
A strict voting procedure assigns to each ballot set a single alternative . Its range is the set of alternatives it selects at some ballot set, and , so .
Individual can manipulate at if some ballot gives
an outcome strictly prefers by the standard of the original ballot. The procedure is strategy-proof if no individual can manipulate it at any ballot set.
The procedure is dictatorial if some individual exists such that, at every ballot set , is the element of the range that ranks highest. It is fully dictatorial if in addition and partially dictatorial if .
The proof uses three further notions. Condition U requires that if every ranks the same above all other elements of , then . The procedure is weak alternative-excluding if , and strong alternative-excluding if in addition it satisfies Condition U. Finally is the restriction of to a subset .
Formalization targets
Goal: Theorem 1 (p. 11)
For a strict committee with and ,
Milestones
- Lemma 1 (p. 13): a strategy-proof strict procedure satisfies Condition U.
- Lemma 2 (p. 15): with one individual and three alternatives, a strategy-proof procedure is fully dictatorial or strong alternative-excluding.
- Lemma 3 (pp. 16–17): for individuals and three alternatives, individuals cannot manipulate if and only if each of the procedures , one for each ballot of individual , is strategy-proof.
- Lemma 4 (p. 22): the induction step from to individuals for three alternatives.
- Lemma 5 (p. 25): for , , a strategy-proof procedure is fully dictatorial or strong alternative-excluding.
- Lemma 6 (p. 26): for , if for all , with , then .
- Proof of Theorem 1, (27)–(28) (p. 27): in the case of a strategy-proof, strong alternative-excluding with , it induces a strategy-proof procedure on the alternatives of its range with .
Significance
Theorem 1 characterizes the strategy-proof strict voting procedures completely: given , they are exactly the procedures that let one individual pick, from a fixed menu , their favourite element. The classical statement assumes the procedure can select every alternative; Theorem 1 shows that excluding alternatives from the menu does not help, since a procedure with any menu of at least three alternatives is still governed by one individual. The paper's correspondence theorem with Arrow's social welfare functions (its Theorem 2) and its extension to ballots with indifference (Theorem 1') build on this statement.
The full-range case is on the platform already: AGT.gibbard_satterthwaite (Theorem 9.8 of Nisan–Roughgarden–Tardos–Vazirani, Algorithmic Game Theory) is proved and states that an incentive compatible social choice function onto at least three alternatives has a dictator; it is included here as a reference item and is exactly the case of Lemma 5. The open item MechanismDesign.SocialChoice.gibbard_satterthwaite (Börgers, Proposition 8.1) poses the full-range equivalence. Theorem 1 contains both as the special case . What this mission adds is the range-restricted statement and the paper's own route to it: the induction on the number of individuals for three alternatives (Lemmas 2–4) and the reduction of a procedure with a proper range to its range (Lemma 6 and (27)–(28)). The paper only sketches Lemma 4 and defers the induction on to Satterthwaite's dissertation, so the formal development fills these gaps.
Difficulty
The "if" direction is immediate. For the "only if" direction the natural first idea is to apply the full-range theorem to the procedure viewed as a map into . This fails as stated: the procedure is still defined on rankings of all alternatives, and nothing yet says that its choice ignores how individuals rank alternatives outside . That is the content of Lemma 6, which needs strategy-proofness and Condition U; only after it does the procedure factor through rankings of , and only then is the factor itself strategy-proof. The full-range case itself is the classical theorem, whose known proofs (via Arrow's theorem, or by pivotal-voter arguments) are combinatorial and long.
Formalization scope
- Individuals and alternatives are finite types
ιandA; =Fintype.card ι, =Fintype.card A, and the individuals of Lemmas 3–4 areOption ι, withnonethe individual . - Strict ballots and strategy-proofness come from the published definition
agt_social(namespaceAGT): a ballot is a relationrwithIsStrictTotalOrder A r,r x yis the paper's , and strategy-proofness isAGT.IncentiveCompatible, which is the paper's definition (1) on . - The range is taken over strict ballot sets only, and is its
Set.ncard. Theorem 1 assumes and ; holds automatically, so is not a separate hypothesis. - Dictatorial reads the paper's dictator function as "the -maximal element of ", which for strong orders is unique.
- is encoded as agreement of the two strict relations on , and the procedure of (28) lives on the subtype of the range.
- Lemmas keep their printed hypotheses (, , Lemma 6's ), even where the conclusion would hold without them. The range restriction milestone keeps the proof's case assumptions of strong alternative exclusion and .
Two encodings would trivialize the goal and are excluded: a range taken over all relation profiles (junk values would make meaningless), and a dictatorship that only constrains ballot sets at which the dictator's overall favourite lies in , or that asks for the dictator's favourite in all of (false whenever ). The bound is needed: a procedure with two possible outcomes, such as majority vote between two fixed alternatives, is strategy-proof and not dictatorial, and an imposed procedure () is dictatorial only vacuously.
Contributions are welcome at every milestone, and the restriction-to-range step (Lemma 6 and (27)–(28)) is reusable for any statement that transfers results from full-range to range-restricted procedures.
Selected references
- M. A. Satterthwaite, Strategy-proofness and Arrow's Conditions: Existence and Correspondence Theorems for Voting Procedures and Social Welfare Functions, Northwestern University CMS-EMS Discussion Paper No. 122, rev. Dec. 12, 1974; published in J. Econ. Theory 10(2) (1975) 187–217. https://doi.org/10.1016/0022-0531(75)90050-2
- A. Gibbard, Manipulation of Voting Schemes: A General Result, Econometrica 41(4) (1973) 587–601. https://doi.org/10.2307/1914083
- N. Nisan, Introduction to Mechanism Design (for Computer Scientists), Chapter 9 of N. Nisan, T. Roughgarden, É. Tardos, V. V. Vazirani (eds.), Algorithmic Game Theory, Cambridge University Press, 2007. https://doi.org/10.1017/CBO9780511800481
- T. Börgers, An Introduction to the Theory of Mechanism Design, Oxford University Press, 2015, Chapter 8. https://doi.org/10.1093/acprof:oso/9780199734023.001.0001