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Slot-specific Priorities with Capacity Transfers

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  • Avataneo, Michelle
  • Turhan, Bertan

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.

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  • Avataneo, Michelle & Turhan, Bertan, 2020. "Slot-specific Priorities with Capacity Transfers," ISU General Staff Papers 202009010700001099, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:202009010700001099
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    Cited by:

    1. Aygün, Orhan & Turhan, Bertan, 2021. "How to De-reserve Reserves," ISU General Staff Papers 202103100800001123, Iowa State University, Department of Economics.
    2. Orhan Aygün & Bertan Turhan, 2023. "How to De-Reserve Reserves: Admissions to Technical Colleges in India," Management Science, INFORMS, vol. 69(10), pages 6147-6164, October.
    3. Afacan, Mustafa Oğuz & Dur, Umut & Van der Linden, Martin, 2024. "Capacity design in school choice," Games and Economic Behavior, Elsevier, vol. 146(C), pages 277-291.
    4. Aygün, Orhan & Turhan, Bertan, 2021. "How to De-reserve Reserves," ISU General Staff Papers 202104130700001123, Iowa State University, Department of Economics.
    5. Hirata, Daisuke & 平田, 大祐 & Kasuya, Yusuke & 糟谷, 祐介 & Okumura, Yasunori & 奥村, 保規, 2023. "Stability, Strategy-Proofness, and Respect for Improvements," Discussion Papers 2023-01, Graduate School of Economics, Hitotsubashi University.
    6. Orhan Aygün & Bertan Turhan, 2023. "Priority design for engineering colleges in India," Indian Economic Review, Springer, vol. 58(1), pages 5-15, July.
    7. Manocha, Kriti & Turhan, Bertan, "undated". "Gradual Matching with Affirmative Action," ISU General Staff Papers 202311271609320000, Iowa State University, Department of Economics.
    8. Aygün, Orhan & Turhan, Bertan, 2019. "Matching with Generalized Lexicographic Choice Rules," ISU General Staff Papers 20191101070000, Iowa State University, Department of Economics.
    9. Orhan Aygun & Bertan Turhan, 2020. "Designing Direct Matching Mechanism for India with Comprehensive Affirmative Action," Papers 2004.13264, arXiv.org, revised Dec 2021.

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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