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Slot-specific Priorities with Capacity Transfers

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  • Michelle Avataneo
  • Bertan Turhan

Abstract

In many real-world matching applications, there are restrictions for institutions either on priorities of their slots or on the transferability of unfilled slots over others (or both). Motivated by the need in such real-life matching problems, this paper formulates a family of practical choice rules, slot-specific priorities with capacity transfers (SSPwCT). These practical rules invoke both slot-specific priorities structure and transferability of vacant slots. We show that the cumulative offer mechanism (COM) is stable, strategy-proof and respects improvements with regards to SSPwCT choice rules. Transferring the capacity of one more unfilled slot, while all else is constant, leads to strategy-proof Pareto improvement of the COM. Following Kominer's (2020) formulation, we also provide comparative static results for expansion of branch capacity and addition of new contracts in the SSPwCT framework. Our results have implications for resource allocation problems with diversity considerations.

Suggested Citation

  • Michelle Avataneo & Bertan Turhan, 2020. "Slot-specific Priorities with Capacity Transfers," Papers 2004.13265, arXiv.org, revised Sep 2020.
  • Handle: RePEc:arx:papers:2004.13265
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    References listed on IDEAS

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    Cited by:

    1. Orhan Aygun & Bertan Turhan, 2020. "Designing Direct Matching Mechanism for India with Comprehensive Affirmative Action," Papers 2004.13264, arXiv.org, revised Jul 2020.
    2. Aygün, Orhan & Turhan, Bertan, 2021. "How to De-reserve Reserves," ISU General Staff Papers 202103100800001123, Iowa State University, Department of Economics.
    3. Orhan Aygun & Bertan Turhan, 2021. "How to Deserve Reserves," Papers 2103.05899, arXiv.org.
    4. Orhan Aygun & Bertan Turhan, 2020. "Matching with Generalized Lexicographic Choice Rules," Papers 2004.13261, arXiv.org, revised Jul 2020.

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