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Endowments-swapping-proof house allocation

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  • Fujinaka, Yuji
  • Wakayama, Takuma

Abstract

We consider house (re)allocation problems (Shapley and Scarf, 1974) with strict preferences. We are concerned with the possibility that a pair of agents may gain by swapping their endowments before the operation of the chosen rule. A rule is called endowments-swapping-proof if it is immune to this kind of manipulation. Our main result is that the top trading cycles rule is the only rule that satisfies individual rationality, strategy-proofness, and endowments-swapping-proofness.

Suggested Citation

  • Fujinaka, Yuji & Wakayama, Takuma, 2018. "Endowments-swapping-proof house allocation," Games and Economic Behavior, Elsevier, vol. 111(C), pages 187-202.
  • Handle: RePEc:eee:gamebe:v:111:y:2018:i:c:p:187-202
    DOI: 10.1016/j.geb.2018.05.004
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    References listed on IDEAS

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    Cited by:

    1. Jingsheng Yu & Jun Zhang, 2020. "Fractional Top Trading Cycle," Papers 2005.06878, arXiv.org, revised May 2020.

    More about this item

    Keywords

    Endowments-swapping-proofness; Top trading cycles; Strategy-proofness; Housing markets;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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