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Preference revelation games and strict cores of multiple‐type housing market problems

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  • Di Feng
  • Bettina Klaus

Abstract

We consider multiple‐type housing market problems as introduced by Moulin (1995) and study the relationship between strict strong Nash equilibria and the strict core (two solution concepts that are defined in terms of the absence of weak blocking coalitions). We prove that for lexicographically separable preferences, the set of all strict strong Nash equilibrium outcomes of each preference revelation game that is induced by a strictly core stable mechanism is a subset of the strict core, but not vice versa, that is, there are strict core allocations that cannot be implemented in strict strong Nash equilibrium. This result is extended to a more general set of preference domains that satisfy strict core non‐emptiness and a minimal preference domain richness assumption.

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  • Di Feng & Bettina Klaus, 2022. "Preference revelation games and strict cores of multiple‐type housing market problems," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 61-76, March.
    • Handle: RePEc:bla:ijethy:v:18:y:2022:i:1:p:61-76
    DOI: 10.1111/ijet.12321
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    Cited by:

    1. Di Feng & Bettina Klaus & Flip Klijn, 2022. "A Characterization of the Coordinate-Wise Top-Trading-Cycles Mechanism for Multiple-Type Housing Markets," Cahiers de Recherches Economiques du Département d'économie 22.06, Université de Lausanne, Faculté des HEC, Département d’économie.
    2. Di Feng, 2023. "Efficiency in Multiple-Type Housing Markets," Papers 2308.14989, arXiv.org, revised Dec 2023.
    3. Di Feng, 2023. "Endowments-swapping-proofness and Efficiency in Multiple-Type Housing Markets," Discussion Paper Series DP2023-14, Research Institute for Economics & Business Administration, Kobe University.
    4. Di Feng & Bettina Klaus & Flip Klijn, 2022. "Characterizing the Typewise Top-Trading-Cycles Mechanism for Multiple-Type Housing Markets," Working Papers 1341, Barcelona School of Economics.

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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