Incentives in the probabilistic serial mechanism
AbstractThe probabilistic serial mechanism (Bogomolnaia and Moulin, 2001 ) is ordinally efficient but not strategy-proof. We study incentives in the probabilistic serial mechanism for large assignment problems. We establish that for a fixed set of object types and an agent with a given expected utility function, if there are sufficiently many copies of each object type, then reporting ordinal preferences truthfully is a weakly dominant strategy for the agent (regardless of the number of other agents and their preferences). The non-manipulability and the ordinal efficiency of the probabilistic serial mechanism support its implementation instead of random serial dictatorship in large assignment problems.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 145 (2010)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/622869
Random assignment Probabilistic serial mechanism Ordinal efficiency Exact strategy-proofness in large markets Random serial dictatorship;
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