Random Matching under Dichotomous Preferences
AbstractWe consider bilateral matching problems where each person views those on the other side of the market as either acceptable or unacceptable: an acceptable mate is preferred to remaining single, and the latter to an unacceptable mate; all acceptable mates are welfare-wise identical. Using randomization, many efficient and fair matching methods define strategy-proof revelation mechanisms. Randomly selecting a priority ordering of the participants is a simple example. Equalizing as much as possible the probability of getting an acceptable mate across all participants stands out for its normative and incentives properties: the profile of probabilities is Lorenz dominant, and the revelation mechanism is group-strategy-proof for each side of the market. Our results apply to the random assignment problem as well.
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Bibliographic InfoPaper provided by Rice University, Department of Economics in its series Working Papers with number 2001-03.
Date of creation: Oct 2001
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- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
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