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Object Allocation via Deferred-Acceptance : Strategy-Proofness and Comparative Statics

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  • Lars EHLERS
  • Bettina KLAUS

Abstract

We study the problem of assigning indivisible and heterogenous objects (e.g., houses, jobs, offices, school or university admissions etc.) to agents. Each agent receives at most one object and monetary compensations are not possible. We consider mechanisms satisfying a set of basic properties (unavailable-type-invariance, individual-rationality, weak non-wastefulness, or truncation-invariance). In the house allocation problem, where at most one copy of each object is available, deferred-acceptance (DA)-mechanisms allocate objects based on exogenously fixed objects' priorities over agents and the agent-proposing deferred-acceptance-algorithm. For house allocation we show that DA-mechanisms are characterized by our basic properties and (i) strategy-proofness and population-monotonicity or (ii) strategy-proofness and resource-monotonicity. Once we allow for multiple identical copies of objects, on the one hand the first characterization breaks down and there are unstable mechanisms satisfying our basic properties and (i) strategy-proofness and population-monotonicity. On the other hand, our basic properties and (ii) strategy-proofness and resource-monotonicity characterize (the most general) class of DA-mechanisms based on objects' fixed choice functions that are acceptant, monotonic, substitutable, and consistent. These choice functions are used by objects to reject agents in the agent-proposing deferred-acceptance-algorithm. Therefore, in the general model resource-monotonicity is the “stronger” comparative statics requirement because it characterizes (together with our basic requirements and strategy-proofness) choice-based DA-mechanisms whereas population-monotonicity (together with our basic properties and strategy-proofness) does not.

Suggested Citation

  • Lars EHLERS & Bettina KLAUS, 2014. "Object Allocation via Deferred-Acceptance : Strategy-Proofness and Comparative Statics," Cahiers de recherche 14-2014, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Handle: RePEc:mtl:montec:14-2014
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christian Basteck & Bettina Klaus & Dorothea Kuebler, 2018. "How Lotteries in School Choice Help to Level the Playing Field," Cahiers de Recherches Economiques du Département d'économie 18.06, Université de Lausanne, Faculté des HEC, Département d’économie.
    2. Bettina Klaus & Alexandru Nichifor, 2020. "Serial dictatorship mechanisms with reservation prices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(3), pages 665-684, October.
    3. Mustafa Oğuz Afacan & Umut Mert Dur, 2020. "Constrained stability in two-sided matching markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(3), pages 477-494, October.
    4. Karakaya, Mehmet & Klaus, Bettina & Schlegel, Jan Christoph, 2019. "Top trading cycles, consistency, and acyclic priorities for house allocation with existing tenants," Journal of Economic Theory, Elsevier, vol. 184(C).
    5. Bilancini, Ennio & Boncinelli, Leonardo & Newton, Jonathan, 2020. "Evolution and Rawlsian social choice in matching," Games and Economic Behavior, Elsevier, vol. 123(C), pages 68-80.
    6. Battal Dogan & Serhat Dogan & Kemal Yildiz, 2017. "Lexicographic Choice under Variable Capacity Constraints," Cahiers de Recherches Economiques du Département d'économie 17.02, Université de Lausanne, Faculté des HEC, Département d’économie.
    7. Doğan, Battal & Klaus, Bettina, 2018. "Object allocation via immediate-acceptance: Characterizations and an affirmative action application," Journal of Mathematical Economics, Elsevier, vol. 79(C), pages 140-156.
    8. Keisuke Bando & Kenzo Imamura, 2016. "A necessary and sufficient condition for weak Maskin monotonicity in an allocation problem with indivisible goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 589-606, October.
    9. Afacan, Mustafa Oǧuz, 2017. "Some further properties of the cumulative offer process," Games and Economic Behavior, Elsevier, vol. 104(C), pages 656-665.

    More about this item

    Keywords

    indivisible objects allocation; deferred-acceptance-algorithm; strategy-proofness; resource-monotonicity; population-monotonicity;

    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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