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On the integration of Shapley-Scarf housing markets

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  • Rajnish Kunar
  • Kriti Manocha
  • Josue Ortega

Abstract

We study the welfare consequences of merging Shapley--Scarf markets. Market integration can lead to large welfare losses and make the vast majority of agents worse-off, but is on average welfare-enhancing and makes all agents better off ex-ante. The number of agents harmed by integration is a minority when all markets are small or agents' preferences are highly correlated.

Suggested Citation

  • Rajnish Kunar & Kriti Manocha & Josue Ortega, 2020. "On the integration of Shapley-Scarf housing markets," Papers 2004.09075, arXiv.org, revised Jan 2022.
    • Handle: RePEc:arx:papers:2004.09075
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    References listed on IDEAS

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    1. Aue, Robert & Klein, Thilo & Ortega, Josué, 2020. "What happens when separate and unequal school districts merge?," ZEW Discussion Papers 20-032, ZEW - Leibniz Centre for European Economic Research.

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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