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Ex-post incentive compatible and individually rational assignments in housing markets with interdependent values

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  • Fujinaka, Yuji
  • Miyakawa, Toshiji

Abstract

This paper presents a model for housing markets with interdependent values. We introduce private information on the quality of a house (i.e., high or low), which is known only to the initial owner. Interdependency means that the ex-post preference of an agent depends on the private information of the other agents with regard to the quality of houses. We prove that on a domain satisfying a richness condition, the no-trade rule is the only rule that satisfies ex-post incentive compatibility and ex-post individual rationality.

Suggested Citation

  • Fujinaka, Yuji & Miyakawa, Toshiji, 2020. "Ex-post incentive compatible and individually rational assignments in housing markets with interdependent values," Journal of Mathematical Economics, Elsevier, vol. 91(C), pages 157-164.
  • Handle: RePEc:eee:mateco:v:91:y:2020:i:c:p:157-164
    DOI: 10.1016/j.jmateco.2020.09.002
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    References listed on IDEAS

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    Cited by:

    1. Mariya Halushka, 2021. "Obviously Strategy-proof Mechanism Design With Rich Private Information," Working Papers 2104E, University of Ottawa, Department of Economics.

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