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Allocation via Deferred-Acceptance under Responsive Priorities

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  • EHLERS, Lars
  • KLAUS, Bettina

Abstract

In many economic environments - such as college admissions, student placements at public schools, and university housing allocation - indivisible objects with capacity constraints are assigned to a set of agents when each agent receives at most one object and monetary compensations are not allowed. In these important applications the agent-proposing deferred-acceptance algorithm with responsive priorities (called responsive DA-rule) performs well and economists have successfully implemented responsive DA-rules or slight variants thereof. First, for house allocation problems we characterize the class of responsive DA-rules by a set of basic and intuitive properties, namely, unavailable type invariance, individual rationality, weak non-wastefulness, resource-monotonicity, truncation invariance, and strategy-proofness. We extend this characterization to the full class of allocation problems with capacity constraints by replacing resource-monotonicity with two-agent consistent conflict resolution. An alternative characterization of responsive DA-rules is obtained using unassigned objects invariance, individual rationality, weak non-wastefulness, weak consistency, and strategy-proofness. Various characterizations of the class of "acyclic" responsive DA-rules are obtained by using the properties efficiency, group strategy-proofness, and consistency.

Suggested Citation

  • EHLERS, Lars & KLAUS, Bettina, 2009. "Allocation via Deferred-Acceptance under Responsive Priorities," Cahiers de recherche 2009-16, Universite de Montreal, Departement de sciences economiques.
  • Handle: RePEc:mtl:montde:2009-16
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    File URL: http://hdl.handle.net/1866/4001
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    References listed on IDEAS

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    1. Lars Ehlers & Bettina Klaus, 2007. "Consistent House Allocation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(3), pages 561-574, March.
    2. Ehlers, Lars & Klaus, Bettina, 2006. "Efficient priority rules," Games and Economic Behavior, Elsevier, vol. 55(2), pages 372-384, May.
    3. Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
    4. Haluk I. Ergin, 2002. "Efficient Resource Allocation on the Basis of Priorities," Econometrica, Econometric Society, vol. 70(6), pages 2489-2497, November.
    5. Lars Ehlers & Bettina Klaus, 2011. "Corrigendum to “Resource-monotonicity for house allocation problems”," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(2), pages 281-287, May.
    6. Fuhito Kojima & Mihai Manea, 2010. "Axioms for Deferred Acceptance," Econometrica, Econometric Society, vol. 78(2), pages 633-653, March.
    7. John William Hatfield & Paul R. Milgrom, 2005. "Matching with Contracts," American Economic Review, American Economic Association, vol. 95(4), pages 913-935, September.
    8. Lars Ehlers & Bettina Klaus, 2003. "Resource-Monotonicity for House Allocation," Working Papers 33, Barcelona Graduate School of Economics.
    9. Alvin Roth, 2008. "Deferred acceptance algorithms: history, theory, practice, and open questions," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(3), pages 537-569, March.
    10. Thomson, W., 1996. "Consistent Allocation Rules," RCER Working Papers 418, University of Rochester - Center for Economic Research (RCER).
    11. Crawford, Vincent P., 1991. "Comparative statics in matching markets," Journal of Economic Theory, Elsevier, vol. 54(2), pages 389-400, August.
    12. Ehlers, Lars, 2002. "Coalitional Strategy-Proof House Allocation," Journal of Economic Theory, Elsevier, vol. 105(2), pages 298-317, August.
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    Cited by:

    1. Thayer Morrill, 2013. "An alternative characterization of the deferred acceptance algorithm," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(1), pages 19-28, February.
    2. Lars Ehlers & Bettina Klaus, 2014. "Strategy-Proofness Makes the Difference: Deferred-Acceptance with Responsive Priorities," Mathematics of Operations Research, INFORMS, vol. 39(4), pages 949-966, November.
    3. Lars Ehlers & Bettina Klaus, 2013. "House Allocation via Deferred-Acceptance," Cahiers de recherche 06-2013, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    4. Hashimoto, Tadashi & Hirata, Daisuke & Kesten, Onur & Kurino, Morimitsu & Ünver, M. Utku, 2014. "Two axiomatic approaches to the probabilistic serial mechanism," Theoretical Economics, Econometric Society, vol. 9(1), January.
    5. Thayer Morrill, 2013. "An alternative characterization of top trading cycles," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(1), pages 181-197, September.

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    More about this item

    Keywords

    consistency; deferred-acceptance algorithm; indivisible objects allocation; resourcemonotonicity; strategy-proofness; weak non-wastefulness;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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