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Allocation via Deferred-Acceptance under Responsive Priorities

  • EHLERS, Lars
  • KLAUS, Bettina

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 eciency, group strategy-proofness, and consistency.

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Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 17-2009.

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Length: 27 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:mtl:montec:17-2009
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  1. Bettina Klaus & Lars Ehlers, 2009. "Corrigendum to "Resource-Monotonicity for House Allocation Problems"," Harvard Business School Working Papers 09-110, Harvard Business School.
  2. Ehlers, Lars & Klaus, Bettina, 2006. "Efficient priority rules," Games and Economic Behavior, Elsevier, vol. 55(2), pages 372-384, May.
  3. Crawford, Vincent P., 1991. "Comparative statics in matching markets," Journal of Economic Theory, Elsevier, vol. 54(2), pages 389-400, August.
  4. Alvin Roth, 2008. "Deferred acceptance algorithms: history, theory, practice, and open questions," International Journal of Game Theory, Springer, vol. 36(3), pages 537-569, March.
  5. Haluk I. Ergin, 2002. "Efficient Resource Allocation on the Basis of Priorities," Econometrica, Econometric Society, vol. 70(6), pages 2489-2497, November.
  6. Atila Abdulkadiroglu & Tayfun Sönmez, 2003. "School Choice: A Mechanism Design Approach," American Economic Review, American Economic Association, vol. 93(3), pages 729-747, June.
  7. Paul Milgrom, 2003. "Matching with Contracts," Working Papers 03003, Stanford University, Department of Economics.
  8. Fuhito Kojima & Mihai Manea, 2010. "Axioms for Deferred Acceptance," Econometrica, Econometric Society, vol. 78(2), pages 633-653, 03.
  9. EHLERS, Lars & KLAUS, Bettina, 2005. "Consistent House Allocation," Cahiers de recherche 2005-08, Universite de Montreal, Departement de sciences economiques.
  10. Lars Ehlers & Bettina Klaus, 2003. "Resource-Monotonicity for House Allocation," Working Papers 33, Barcelona Graduate School of Economics.
  11. Ehlers, Lars, 2002. "Coalitional Strategy-Proof House Allocation," Journal of Economic Theory, Elsevier, vol. 105(2), pages 298-317, August.
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