This paper studies allocation correspondences in the house allocation problems with collective initial endowments. We examine the implications of two axioms, namely “consistency” and “unanimity.” Consistency requires the allocation correspondence be invariant under reductions of...

The article proposes an enabling mechanism for the creation, adjustment and dissolution of governmental units, giving autonomy to each individual as in a direct democracy. The mechanism is designed such that Pareto optimality is possible, in contrast to earlier models which make various...