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Obviously Strategy-proof Implementation of Assignment Rules: A New Characterization

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  • Mandal, Pinaki
  • Roy, Souvik

Abstract

We consider assignment problems where individuals are to be assigned at most one indivisible object and monetary transfers are not allowed. We provide a characterization of assignment rules that are Pareto efficient, non-bossy, and implementable in obviously strategy-proof (OSP) mechanisms. As corollaries of our result, we obtain a characterization of OSP-implementable fixed priority top trading cycles (FPTTC) rules, hierarchical exchange rules, and trading cycles rules. Troyan (2019) provides a characterization of OSP-implementable FPTTC rules when there are equal number of individuals and objects. Our result generalizes this for arbitrary values of those.

Suggested Citation

  • Mandal, Pinaki & Roy, Souvik, 2020. "Obviously Strategy-proof Implementation of Assignment Rules: A New Characterization," MPRA Paper 104044, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104044
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    File URL: https://mpra.ub.uni-muenchen.de/108368/1/MPRA_paper_108368.pdf
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    References listed on IDEAS

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    1. Szilvia Papai, 2000. "Strategyproof Assignment by Hierarchical Exchange," Econometrica, Econometric Society, vol. 68(6), pages 1403-1434, November.
    2. Ashlagi, Itai & Gonczarowski, Yannai A., 2018. "Stable matching mechanisms are not obviously strategy-proof," Journal of Economic Theory, Elsevier, vol. 177(C), pages 405-425.
    3. Shengwu Li, 2017. "Obviously Strategy-Proof Mechanisms," American Economic Review, American Economic Association, vol. 107(11), pages 3257-3287, November.
    4. Marek Pycia & Peter Troyan, 2021. "A theory of simplicity in games and mechanism design," ECON - Working Papers 393, Department of Economics - University of Zurich.
    5. Pycia, Marek & Unver, Utku, 2017. "Incentive compatible allocation and exchange of discrete resources," Theoretical Economics, Econometric Society, vol. 12(1), January.
    6. Mark A. Satterthwaite & Hugo Sonnenschein, 1981. "Strategy-Proof Allocation Mechanisms at Differentiable Points," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 587-597.
    7. Peter Troyan, 2019. "Obviously Strategy‐Proof Implementation Of Top Trading Cycles," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(3), pages 1249-1261, August.
    8. Avinatan Hassidim & Déborah Marciano & Assaf Romm & Ran I. Shorrer, 2017. "The Mechanism Is Truthful, Why Aren't You?," American Economic Review, American Economic Association, vol. 107(5), pages 220-224, May.
    9. Chen, Yan & Sonmez, Tayfun, 2006. "School choice: an experimental study," Journal of Economic Theory, Elsevier, vol. 127(1), pages 202-231, March.
    10. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
    11. Rees-Jones, Alex, 2018. "Suboptimal behavior in strategy-proof mechanisms: Evidence from the residency match," Games and Economic Behavior, Elsevier, vol. 108(C), pages 317-330.
    12. Roth, Alvin E. & Postlewaite, Andrew, 1977. "Weak versus strong domination in a market with indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 4(2), pages 131-137, August.
    13. Avinatan Hassidim & Assaf Romm & Ran I. Shorrer, 2016. ""Strategic" Behavior in a Strategy-Proof Environment," Working Paper 413411, Harvard University OpenScholar.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mandal, Pinaki & Roy, Souvik, 2021. "Strategy-proof Allocation of Indivisible Goods when Preferences are Single-peaked," MPRA Paper 105320, University Library of Munich, Germany.
    2. Louis Golowich & Shengwu Li, 2021. "On the Computational Properties of Obviously Strategy-Proof Mechanisms," Papers 2101.05149, arXiv.org, revised Oct 2022.
    3. Mandal, Pinaki & Roy, Souvik, 2022. "On obviously strategy-proof implementation of fixed priority top trading cycles with outside options," Economics Letters, Elsevier, vol. 211(C).
    4. Marek Pycia & Peter Troyan, 2021. "A theory of simplicity in games and mechanism design," ECON - Working Papers 393, Department of Economics - University of Zurich.

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    More about this item

    Keywords

    Assignment problem; Obvious strategy-proofness; Pareto efficiency; Non-bossiness; Indivisible goods;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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