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Some new characterizations of top trading cycles

Author

Listed:
  • Chen, Yajing
  • Jiao, Zhenhua
  • Zhang, Chenfeng
  • Zhang, Luosai

Abstract

This paper studies the housing market problem introduced by Shapley and Scarf (1974). We refine some existing characterizations of the well-known top trading cycles (TTC) rule by relaxing strategy-proofness and efficiency. Specifically, our main result shows that a rule is equivalent to the TTC rule if and only if it satisfies either of the following two sets of axioms: (1) individual rationality, pair-efficiency, and upper invariance; and (2) individual rationality, endowments-swapping-proofness, and upper invariance. Additionally, we clarify the logical relationships among a set of axioms that are weaker than strategy-proofness. New characterizations of the TTC rule are obtained as direct consequences of our main theorems.

Suggested Citation

  • Chen, Yajing & Jiao, Zhenhua & Zhang, Chenfeng & Zhang, Luosai, 2025. "Some new characterizations of top trading cycles," Journal of Mathematical Economics, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:mateco:v:121:y:2025:i:c:s0304406825001077
    DOI: 10.1016/j.jmateco.2025.103190
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    References listed on IDEAS

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    Keywords

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    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
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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