Pareto efficient combinatorial auctions: Dichotomous preferences without quasilinearity

We consider a combinatorial auction model where preferences of agents over bundles objects and payments need not be quasilinear. However, we restrict the to dichotomous. An agent with dichotomous preference partitions set as acceptable unacceptable, at same payment level, she is indifferent between in each class but strictly prefers unacceptable bundles. show that there no Pareto efficient, dominant strategy incentive compatible (DSIC), individually rational (IR) mechanism satisfying subsidy if domain includes all preferences. generalization VCG DSIC, IR satisfies contains only positive income effect tightness this result: adding any non-dichotomous (satisfying some natural properties) quasilinear brings back impossibility result.