Pseudomarkets with Priorities in Large Random Assignment Economies
I study large random assignment economies with a continuum of agents and a finite number of object types. I consider the existence of weak priorities discriminating among agents with respect to their rights concerning the final assignment. The respect for priorities ex ante (ex-ante stability) usually precludes ex-ante envy-freeness. Therefore I define a new concept of fairness, called no unjustified lower chances: priorities with respect to one object type cannot justify different achievable chances regarding another object type. This concept, which applies to the assignment mechanism rather than to the assignment itself, implies ex-ante envy-freeness among agents of the same priority type. I propose a variation of Hylland and Zeckhauser' (1979) pseudomarket that meets ex-ante stability, no unjustified lower chances and ex-ante efficiency among agents of the same priority type. Assuming enough richness in preferences and priorities, the converse is also true: any random assignment with these properties could be achieved through an equilibrium in a pseudomarket with priorities. If priorities are acyclical (the ordering of agents is the same for each object type), this pseudomarket achieves ex-ante efficient random assignments.
|Date of creation:||08 Mar 2011|
|Date of revision:|
|Contact details of provider:|| Postal: 08193, Bellaterra, Barcelona|
Phone: 34 93 592 1203
Fax: +34 93 542-1223
Web page: http://pareto.uab.cat
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. R. Varian, 1975.
"Two Problems in the Theory of Fairness,"
163, Massachusetts Institute of Technology (MIT), Department of Economics.
- Lin Zhou, 1991. "Strictly Fair Allocations in Large Exchange Economies," Cowles Foundation Discussion Papers 972, Cowles Foundation for Research in Economics, Yale University.
- Atila Abdulkadiroglu & Yeon-Koo Che & Yosuke Yasuda, 2010.
"Expanding 'Choice' in School Choice,"
10-23, Duke University, Department of Economics.
- Atila Abdulkadiroğlu & Yeon-Koo Che & Yosuke Yasuda, 2010. "Expanding “Choice” in School Choice," Levine's Working Paper Archive 661465000000000062, David K. Levine.
- Atila Abdulkadiroglu & Yeon-Koo Che & Yosuke Yasuda, 2008. "Expanding "Choice" in School Choice," GRIPS Discussion Papers 08-17, National Graduate Institute for Policy Studies.
- Kesten, Onur & Ünver, M. Utku, 2015.
"A theory of school choice lotteries,"
Econometric Society, vol. 10(2), May.
- 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.
- Parag A. Pathak & Tayfun Sonmez, 2008. "Leveling the Playing Field: Sincere and Sophisticated Players in the Boston Mechanism," American Economic Review, American Economic Association, vol. 98(4), pages 1636-52, September.
- Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
- Tayfun Sönmez & M. Utku Ünver, 2009. "Matching, Allocation, and Exchange of Discrete Resources," Boston College Working Papers in Economics 717, Boston College Department of Economics.
- Zhou, Lin, 1992. "Strictly fair allocations in large exchange economies," Journal of Economic Theory, Elsevier, vol. 57(1), pages 158-175.
- Thomson, W., 1996. "Consistent Allocation Rules," RCER Working Papers 418, University of Rochester - Center for Economic Research (RCER).
- Haluk Ergin & Tayfun Sönmez, 2005.
"Games of School Choice under the Boston Mechanism,"
Boston College Working Papers in Economics
619, Boston College Department of Economics.
- William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
When requesting a correction, please mention this item's handle: RePEc:aub:autbar:864.11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Xavier Vila)
If references are entirely missing, you can add them using this form.