Competitive equilibria in school assignment

Umut Dur and Thayer Morrill

Games and Economic Behavior, 2018, vol. 108, issue C, 269-274

Abstract: Top Trading Cycles was originally developed as an elegant method for finding a competitive equilibrium of Shapley and Scarf's housing market. We extend the definition of a competitive equilibrium to the school assignment problem and show that there remains a profound relationship between Top Trading Cycles and a competitive equilibrium. Specifically, in every competitive equilibrium with weakly decreasing prices, the equilibrium assignment is unique and exactly corresponds to the Top Trading Cycles assignment. This provides a new way of interpreting the worth of a student's priority at a given school. It also provides a new way of explaining Top Trading Cycles to students and a school board.

Keywords: Top trading cycles; School choice; Competitive equilibria (search for similar items in EconPapers)
JEL-codes: C78 D61 D78 I20 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:108:y:2018:i:c:p:269-274

DOI: 10.1016/j.geb.2017.10.003

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