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Efficient lottery design

Author

Listed:
  • Onur Kesten

    () (Carnegie Mellon University)

  • Morimitsu Kurino

    () (University of Tsukuba)

  • Alexander S. Nesterov

    () (WZB)

Abstract

Abstract There has been a surge of interest in stochastic assignment mechanisms that have proven to be theoretically compelling thanks to their prominent welfare properties. Contrary to stochastic mechanisms, however, lottery mechanisms are commonly used in real life for indivisible goods allocation. To help facilitate the design of practical lottery mechanisms, we provide new tools for obtaining stochastic improvements in lotteries. As applications, we propose lottery mechanisms that improve upon the widely used random serial dictatorship mechanism and a lottery representation of its competitor, the probabilistic serial mechanism. The tools we provide here can be useful in developing welfare-enhanced new lottery mechanisms for practical applications such as school choice.

Suggested Citation

  • Onur Kesten & Morimitsu Kurino & Alexander S. Nesterov, 2017. "Efficient lottery design," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 31-57, January.
  • Handle: RePEc:spr:sochwe:v:48:y:2017:i:1:d:10.1007_s00355-016-0978-8
    DOI: 10.1007/s00355-016-0978-8
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    References listed on IDEAS

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