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Random Matching under Dichotomous Preferences

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  • Moulin, Herve

    (Rice U)

  • Bogomolnaia, Anna

    (Southern Methodist U)

Abstract

We consider bilateral matching problems where each person views those on the other side of the market as either acceptable or unacceptable: an acceptable mate is preferred to remaining single, and the latter to an unacceptable mate; all acceptable mates are welfare-wise identical. Using randomization, many efficient and fair matching methods define strategy-proof revelation mechanisms. Randomly selecting a priority ordering of the participants is a simple example. Equalizing as much as possible the probability of getting an acceptable mate across all participants stands out for its normative and incentives properties: the profile of probabilities is Lorenz dominant, and the revelation mechanism is group-strategy-proof for each side of the market. Our results apply to the random assignment problem as well.

Suggested Citation

  • Moulin, Herve & Bogomolnaia, Anna, 2001. "Random Matching under Dichotomous Preferences," Working Papers 2001-03, Rice University, Department of Economics.
    • Handle: RePEc:ecl:riceco:2001-03
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    File URL: http://www.ruf.rice.edu/~econ/papers/2001papers/03Moulin.pdf
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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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