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Stable and efficient resource allocation under weak priorities

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  • Han, Xiang

Abstract

We study the indivisible object allocation problem without monetary transfer, in which each object is endowed with a weak priority ordering over agents. It is well known that stability is generally not compatible with efficiency. We characterize the priority structures for which a stable and efficient assignment always exists, as well as the priority structures that admit a stable, efficient and (group) strategy-proof rule. While house allocation problems and housing markets are two classic families of allocation problems that admit a stable, efficient and group strategy-proof rule, any priority-augmented allocation problem with more than three objects admits such a rule if and only if it is decomposable into a sequence of subproblems, each of which has the structure of a house allocation problem or a housing market.

Suggested Citation

  • Han, Xiang, 2018. "Stable and efficient resource allocation under weak priorities," Games and Economic Behavior, Elsevier, vol. 107(C), pages 1-20.
    • Handle: RePEc:eee:gamebe:v:107:y:2018:i:c:p:1-20
    DOI: 10.1016/j.geb.2017.10.013
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    Cited by:

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    3. Kloosterman, Andrew & Troyan, Peter, 2020. "School choice with asymmetric information: priority design and the curse of acceptance," Theoretical Economics, Econometric Society, vol. 15(3), July.
    4. Minoru Kitahara & Yasunori Okumura, 2021. "Improving efficiency in school choice under partial priorities," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(4), pages 971-987, December.
    5. Erdil, Aytek & Kumano, Taro, 2019. "Efficiency and stability under substitutable priorities with ties," Journal of Economic Theory, Elsevier, vol. 184(C).

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    More about this item

    Keywords

    Indivisible object; Priority; House allocation; Housing market; Stability; Group strategy-proofness;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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