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Efficient and fair trading mechanisms on the full preference domain

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  • Jingsheng Yu
  • Jun Zhang

Abstract

Yu and Zhang (2025) introduce a new method for defining trading mechanisms in market design and apply it to develop new mechanisms that achieve efficiency and fairness in various models. However, their assumption of strict preferences limits its applicability. This paper extends their approach to the full preference domain, allowing for indifferences while preserving key efficiency and fairness properties. As a corollary, we generalize the probabilistic serial mechanism in the house allocation model to the full preference domain without relying on operations research tools.

Suggested Citation

  • Jingsheng Yu & Jun Zhang, 2020. "Efficient and fair trading mechanisms on the full preference domain," Papers 2005.09340, arXiv.org, revised Aug 2025.
    • Handle: RePEc:arx:papers:2005.09340
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    References listed on IDEAS

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    1. Kojima, Fuhito & Manea, Mihai, 2010. "Incentives in the probabilistic serial mechanism," Journal of Economic Theory, Elsevier, vol. 145(1), pages 106-123, January.
    2. Bogomolnaia, Anna & Deb, Rajat & Ehlers, Lars, 2005. "Strategy-proof assignment on the full preference domain," Journal of Economic Theory, Elsevier, vol. 123(2), pages 161-186, August.
    3. 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.
    4. Katta, Akshay-Kumar & Sethuraman, Jay, 2006. "A solution to the random assignment problem on the full preference domain," Journal of Economic Theory, Elsevier, vol. 131(1), pages 231-250, November.
    5. Alcalde-Unzu, Jorge & Molis, Elena, 2011. "Exchange of indivisible goods and indifferences: The Top Trading Absorbing Sets mechanisms," Games and Economic Behavior, Elsevier, vol. 73(1), pages 1-16, September.
    6. Shapley, Lloyd & Scarf, Herbert, 1974. "On cores and indivisibility," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 23-37, March.
    7. Jaramillo, Paula & Manjunath, Vikram, 2012. "The difference indifference makes in strategy-proof allocation of objects," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1913-1946.
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