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Characterization of the walrasian equilibria of the assignment model

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  • Debasis Mishra

    () (Indian Statistical Institute, New Delhi)

  • Dolf Talman

    (Tilburg University Institute, New Delhi)

Abstract

We study the assignment model where a collection of indivisible goods are sold to a set of buyers who want to buy at most one good. We characterize the extreme and interior points of the set of Walrasian equilibrium price vectors for this model. Our characterizations are in terms of demand sets of buyers. Using these characterizations, we also give a unique characterization of the minimum and the maximum Walrasian equilibrium price vectors. Also, necessary and suncient conditions are given under which the interior of the set of Walrasian equilibrium price vectors is non-empty. Several of the results are derived by interpreting Walrasian equilibrium price vectors as potential functions of an appropriate directed graph.

Suggested Citation

  • Debasis Mishra & Dolf Talman, 2008. "Characterization of the walrasian equilibria of the assignment model," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-07, Indian Statistical Institute, New Delhi, India.
  • Handle: RePEc:ind:isipdp:08-07
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    References listed on IDEAS

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    Cited by:

    1. Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2014. "Budget-balance, fairness and minimal manipulability," Theoretical Economics, Econometric Society, vol. 9(3), September.
    2. Yu Zhou & Shigehiro Serizawa, 2016. "Strategy-Proofness and Efficiency for Non-quasi-linear Common-Tiered-Object Preferences: Characterization of Minimum Price Rule," ISER Discussion Paper 0971, Institute of Social and Economic Research, Osaka University.
    3. Andersson, Tommy & Andersson, Christer & Talman, Adolphus Johannes Jan, 2010. "Sets in Excess Demand in Ascending Auctions with Unit-Demand Bidders," Working Papers 2010:15, Lund University, Department of Economics, revised 28 Jun 2012.
    4. Andersson, Tommy & Yang, Zaifu & Zhang, Dongmo, 2015. "How to efficiently allocate houses under price controls?," Economics Letters, Elsevier, vol. 130(C), pages 97-99.
    5. Ingebretsen Carlson, Jim, 2015. "An Approximate Auction," Working Papers 2015:19, Lund University, Department of Economics.
    6. Caplin, Andrew & Leahy, John, 2014. "A graph theoretic approach to markets for indivisible goods," Journal of Mathematical Economics, Elsevier, vol. 52(C), pages 112-122.
    7. Morimoto, Shuhei & Serizawa, Shigehiro, 2015. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society, vol. 10(2), May.
    8. Andersson, Tommy & Gudmundsson, Jens & Talman, Dolf & Yang, Zaifu, 2014. "A competitive partnership formation process," Games and Economic Behavior, Elsevier, vol. 86(C), pages 165-177.
    9. Ingebretsen Carlson, Jim, 2016. "An Auction with Approximated Bidder Preferences - When an Auction has to be Quick," Working Papers 2016:12, Lund University, Department of Economics.
    10. Tommy Andersson & Lars‐Gunnar Svensson, 2014. "Non‐Manipulable House Allocation With Rent Control," Econometrica, Econometric Society, vol. 82(2), pages 507-539, March.
    11. Andersson, Tommy & Erlanson, Albin, 2013. "Multi-item Vickrey–English–Dutch auctions," Games and Economic Behavior, Elsevier, vol. 81(C), pages 116-129.
    12. repec:eee:gamebe:v:104:y:2017:i:c:p:456-467 is not listed on IDEAS
    13. Yokote, Koji, 2017. "Application of the discrete separation theorem to auctions," MPRA Paper 82884, University Library of Munich, Germany.
    14. Sai, Seiken, 2014. "The structure of competitive equilibria in an assignment market," Journal of Mathematical Economics, Elsevier, vol. 51(C), pages 42-49.
    15. repec:eee:gamebe:v:109:y:2018:i:c:p:327-363 is not listed on IDEAS

    More about this item

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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