Outside options in neutral allocation of discrete resources

Abstract Serial dictatorships have emerged as the canonical simple mechanisms in literature on allocation of indivisible goods without transfers. They are only neutral and group-strategy-proof environments which agents no outside options hence individual rationality constraints (Svensson Soc Choice Welfare 16:557–567, 1999). Accounting for constraints, our main result constructs class group-strategy-proof, neutral, non-wasteful mechanisms. These also Pareto efficient we call them binary serial dictatorships. The abundance option—anybody who wants can opt out to get it—is crucial result.