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Empirical content of classic assignment methods: jungle and market economy

Author

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  • Geoffroy Clippel

    (Brown University)

  • Kareen Rozen

    (Brown University)

Abstract

We study the empirical content of serial dictatorship and the core of housing markets. Under serial dictatorship, allocations reveal restrictions on the power ranking between agents. Testing for consistency with serial dictatorship amounts to checking whether there is an ordering satisfying these restrictions, which can be done using a simple generalization of the procedure used to check SARP. When it comes to voluntary trade instead, we characterize the empirical content of the core in Shapley and Scarf (J Math Econ 1:23–27, 1974) housing markets using revealed top-trading cycles. This characterization proves useful in many examples, but is also used to show that testing core consistency can be much more complex.

Suggested Citation

  • Geoffroy Clippel & Kareen Rozen, 2023. "Empirical content of classic assignment methods: jungle and market economy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(3), pages 813-825, October.
    • Handle: RePEc:spr:joecth:v:76:y:2023:i:3:d:10.1007_s00199-022-01479-5
    DOI: 10.1007/s00199-022-01479-5
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    References listed on IDEAS

    as
    1. de Clippel, Geoffroy & Rozen, Kareen, 2021. "Bounded rationality and limited datasets," Theoretical Economics, Econometric Society, vol. 16(2), May.
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    3. Federico Echenique, 2008. "What Matchings Can Be Stable? The Testable Implications of Matching Theory," Mathematics of Operations Research, INFORMS, vol. 33(3), pages 757-768, August.
    4. Sprumont, Yves, 2000. "On the Testable Implications of Collective Choice Theories," Journal of Economic Theory, Elsevier, vol. 93(2), pages 205-232, August.
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    6. Andrés Carvajal & Rahul Deb & James Fenske & John K.‐H. Quah, 2013. "Revealed Preference Tests of the Cournot Model," Econometrica, Econometric Society, vol. 81(6), pages 2351-2379, November.
    7. Hu, Gaoji & Li, Jiangtao & Tang, Rui, 2020. "The revealed preference theory of stable matchings with one-sided preferences," Games and Economic Behavior, Elsevier, vol. 124(C), pages 305-318.
    8. , P. & ,, 2014. "On the consistency of data with bargaining theories," Theoretical Economics, Econometric Society, vol. 9(1), January.
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    More about this item

    Keywords

    Empirical content; Serial dictatorship; Core of housing markets;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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