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Efficient reallocation of indivisible resources: Pair-efficiency versus Pareto-efficiency

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  • Mandal, Pinaki

Abstract

In the object reallocation problem, achieving Pareto-efficiency is desirable, but may be too demanding for implementation purposes. In contrast, pair-efficiency, which is the minimal efficiency requirement, is more suitable. Despite being a significant relaxation, however, pair-efficiency ensures Pareto-efficiency for any strategy-proof and individually rational rule when agents’ preferences are unrestricted.

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  • Mandal, Pinaki, 2025. "Efficient reallocation of indivisible resources: Pair-efficiency versus Pareto-efficiency," Journal of Mathematical Economics, Elsevier, vol. 119(C).
    • Handle: RePEc:eee:mateco:v:119:y:2025:i:c:s0304406825000667
    DOI: 10.1016/j.jmateco.2025.103149
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