Simple Strategy-Proof Approximately Walrasian Mechanisms

This note provides an indirect analysis of the incentive properties of the Walrasian mechanism. It presents mechanisms under which truth-telling is a dominant strategy in finite exchange economies (in contrast to the Walrasian mechanism) and whose outcomes (generically) approximate Walrasian ones for large economies. These mechanisms provide new insights on the well-know trade-off between efficiency and incentive compatibility in finite economies. Journal of Economic Literature Classification Numbers: D50, D71, D78.