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Efficient assignment respecting priorities

Author

Listed:
  • Ehlers, Lars
  • Erdil, Aytek

Abstract

A widespread practice in assignment of heterogeneous indivisible objects is to prioritize some recipients over others depending on the type of the object. Leading examples include assignment of public school seats, and allocation of houses, courses, or offices. Each object comes with a coarse priority ranking over recipients. Respecting such priorities constrains the set of feasible assignments, and therefore might lead to inefficiency, highlighting a tension between respecting priorities and Pareto efficiency. Via an easily verifiable criterion, we fully characterize priority structures under which the constrained efficient assignments do not suffer from such welfare loss, and the constrained efficient rule (CER) is indeed efficient. We also identify the priority structures for which the CER is singleton-valued and group strategy-proof.

Suggested Citation

  • Ehlers, Lars & Erdil, Aytek, 2010. "Efficient assignment respecting priorities," Journal of Economic Theory, Elsevier, vol. 145(3), pages 1269-1282, May.
    • Handle: RePEc:eee:jetheo:v:145:y:2010:i:3:p:1269-1282
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    References listed on IDEAS

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    1. Lars Ehlers & Bettina Klaus, 2007. "Consistent House Allocation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(3), pages 561-574, March.
    2. Ehlers, Lars & Klaus, Bettina, 2006. "Efficient priority rules," Games and Economic Behavior, Elsevier, vol. 55(2), pages 372-384, May.
    3. Chambers, Christopher P., 2004. "Consistency in the probabilistic assignment model," Journal of Mathematical Economics, Elsevier, vol. 40(8), pages 953-962, December.
    4. Haluk I. Ergin, 2002. "Efficient Resource Allocation on the Basis of Priorities," Econometrica, Econometric Society, vol. 70(6), pages 2489-2497, November.
    5. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-1978, December.
    6. Ergin, Haluk I., 2000. "Consistency in house allocation problems," Journal of Mathematical Economics, Elsevier, vol. 34(1), pages 77-97, August.
    7. Kesten, Onur, 2006. "On two competing mechanisms for priority-based allocation problems," Journal of Economic Theory, Elsevier, vol. 127(1), pages 155-171, March.
    8. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
    9. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-689, June.
    10. Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth & Tayfun Sönmez, 2005. "The Boston Public School Match," American Economic Review, American Economic Association, vol. 95(2), pages 368-371, May.
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    Citations

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    Cited by:

    1. repec:kap:theord:v:83:y:2017:i:2:d:10.1007_s11238-017-9598-8 is not listed on IDEAS
    2. EHLERS, Lars & WESTKAMP, Alexander, 2011. "Strategy-Proof Tie-Breaking," Cahiers de recherche 2011-07, Universite de Montreal, Departement de sciences economiques.
    3. Lars Ehlers & Bettina Klaus, 2014. "Strategy-Proofness Makes the Difference: Deferred-Acceptance with Responsive Priorities," Mathematics of Operations Research, INFORMS, vol. 39(4), pages 949-966, November.
    4. Fuhito Kojima & M. Utku Ünver, 2010. "The 'Boston' School-Choice Mechanism," Boston College Working Papers in Economics 729, Boston College Department of Economics, revised 08 Oct 2010.
    5. José Alcalde Pérez & Antonio Romero-Medina, 2011. "Fair School Placement," Working Papers. Serie AD 2011-22, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    6. José Alcalde & Antonio Romero-Medina, 2017. "Fair student placement," Theory and Decision, Springer, vol. 83(2), pages 293-307, August.
    7. Erdil, Aytek, 2014. "Strategy-proof stochastic assignment," Journal of Economic Theory, Elsevier, vol. 151(C), pages 146-162.
    8. Doğan, Battal, 2016. "Responsive affirmative action in school choice," Journal of Economic Theory, Elsevier, vol. 165(C), pages 69-105.
    9. Xiang Han, 2014. "Priority-augmented House Allocation," Departmental Working Papers 1408, Southern Methodist University, Department of Economics.
    10. repec:eee:gamebe:v:107:y:2018:i:c:p:1-20 is not listed on IDEAS
    11. Kojima, Fuhito, 2013. "Efficient resource allocation under multi-unit demand," Games and Economic Behavior, Elsevier, vol. 82(C), pages 1-14.
    12. Fuhito Kojima & M. Ünver, 2014. "The “Boston” school-choice mechanism: an axiomatic approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 515-544, April.
    13. repec:eee:gamebe:v:104:y:2017:i:c:p:230-240 is not listed on IDEAS
    14. Balbuzanov, Ivan & Kotowski, Maciej H., 2017. "Endowments, Exclusion, and Exchange," Working Paper Series rwp17-016, Harvard University, John F. Kennedy School of Government.

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