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House allocation with overlapping generations

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  • Kurino Morimitsu

    (METEOR)

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    Abstract

    Many real-life applications of house allocation problems are dynamic. For example, each year college freshmen move in and seniors move out of on-campus housing. Each student stays on campus for only a few years. A student is a `newcomer’ in the beginning and then becomes an ''existing tenant.’ Motivated by this observation, we introduce a model of house allocation with overlapping generations. In terms of a dynamic rule without monetary transfers, we examine two static rules of serial dictatorship (SD) and top trading cycles (TTC), both of which are based on an ordering of agents and give a higher-order agent a more advantageous position in the assignment procedure. We support a seniority-based SD rule by showing its dynamic Pareto efficiency. Similarly, we support a seniority-based TTC rule under time-invariant preferences by showing its dynamic Pareto efficiency and incentive compatibility.

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    Bibliographic Info

    Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 032.

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    Date of creation: 2011
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    Handle: RePEc:dgr:umamet:2011032

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    Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

    Related research

    Keywords: microeconomics ;

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