 Reallocation with prioritiesJulien Combe and Jan Christoph Schlegel Games and Economic Behavior, 2024, vol. 143, issue C, 287-299 Abstract: We consider a reallocation problem with priorities where each agent is initially endowed with a house and is willing to exchange it but each house has a priority ordering over the agents of the market. In this setting, it is well known that there is no individually rational and stable mechanism. As a result, the literature has introduced a modified stability notion called μ0-stability. In contrast to college admission problems, in which priorities are present but there is no initial endowment, we show that the ownership-adjusted Deferred Acceptance mechanism identified in the literature is not the only individually rational, strategy-proof and μ0-stable mechanism. By introducing a new axiom called the independence of irrelevant agents and using the standard axiom of unanimity, we show that the ownership-adjusted Deferred Acceptance mechanism is the unique mechanism that is individually rational, strategy-proof, μ0-stable, unanimous and independent of irrelevant agents. Keywords: Matching; Housing market; Reallocation; Stability; Priorities (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:143:y:2024:i:c:p:287-299 DOI: 10.1016/j.geb.2023.11.015 Access Statistics for this article Games and Economic Behavior is currently edited by E. Kalai More articles in Games and Economic Behavior from Elsevier |
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