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On wastefulness of random assignments in discrete allocation problems

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  • Jun Zhang

    (Nanjing Audit University)

Abstract

Non-wastefulness is a commonly used efficiency criterion for random assignments in discrete allocation problems when agents may regard some objects as unacceptable. We study the source of wastefulness in randomization. We distinguish between the type of wastefulness that exists only from an ex-ante view and the type of wastefulness that can be ex-post realized, and provide characterizations. We prove three theorems showing that strategy-proof and fair mechanisms must find wasteful random assignments for some problems and their wastefulness can be ex-post realized.

Suggested Citation

  • Jun Zhang, 2023. "On wastefulness of random assignments in discrete allocation problems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(1), pages 289-310, July.
    • Handle: RePEc:spr:joecth:v:76:y:2023:i:1:d:10.1007_s00199-022-01459-9
    DOI: 10.1007/s00199-022-01459-9
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    References listed on IDEAS

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    1. Abdulkadiroglu, Atila & Sonmez, Tayfun, 2003. "Ordinal efficiency and dominated sets of assignments," Journal of Economic Theory, Elsevier, vol. 112(1), pages 157-172, September.
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    3. Nesterov, Alexander S., 2017. "Fairness and efficiency in strategy-proof object allocation mechanisms," Journal of Economic Theory, Elsevier, vol. 170(C), pages 145-168.
    4. Hylland, Aanund & Zeckhauser, Richard, 1979. "The Efficient Allocation of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 293-314, April.
    5. Martini, Giorgio, 2016. "Strategy-proof and fair assignment is wasteful," Games and Economic Behavior, Elsevier, vol. 98(C), pages 172-179.
    6. Bogomolnaia, Anna & Moulin, Herve, 2001. "A New Solution to the Random Assignment Problem," Journal of Economic Theory, Elsevier, vol. 100(2), pages 295-328, October.
    7. Hashimoto, Tadashi & Hirata, Daisuke & Kesten, Onur & Kurino, Morimitsu & Unver, Utku, 2014. "Two axiomatic approaches to the probabilistic serial mechanism," Theoretical Economics, Econometric Society, vol. 9(1), January.
    8. Erdil, Aytek, 2014. "Strategy-proof stochastic assignment," Journal of Economic Theory, Elsevier, vol. 151(C), pages 146-162.
    9. Ramezanian, Rasoul & Feizi, Mehdi, 2022. "Robust ex-post Pareto efficiency and fairness in random assignments: Two impossibility results," Games and Economic Behavior, Elsevier, vol. 135(C), pages 356-367.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Random assignment; Wastefulness; Strategy-proofness; Fairness;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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