Transparent Matching Mechanisms

Markus Möller ()
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Markus Möller: University of Bonn

No 306, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: I study a central authority’s ability to commit to a publicly announced mechanism in a one-to-one agent-object matching model. The authority announces a strategy-proof mechanism and then privately selects a mechanism to initiate a matching. An agent’s observation in form of the final matching has an innocent explanation (Akbarpour and Li, 2020), if given the agent’s reported preferences, there is a combination with other agents’ preferences leading to an identical observation under the announced mechanism. The authority can only commit up to safe deviations (Akbarpour and Li, 2020)—mechanisms that produce only observations with innocent explanations. For efficient or stable announcements, I show that no safe deviation exists if and only if the announced mechanism is dictatorial. I establish that the Deferred Acceptance (DA) Mechanism (Gale and Shapley, 1962) implies commitment to stability. Finally, I show that group strategy-proof and efficient announcements allow commitment to efficiency only if they are dictatorial.

Keywords: Matching; Transparency; Partial Commitment; Strategy-Proof; Stability; Efficiency; DA; TTC (search for similar items in EconPapers)
JEL-codes: C78 D47 D82 (search for similar items in EconPapers)
Pages: 34
Date: 2024-05
New Economics Papers: this item is included in nep-des and nep-mic
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