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Random assignments and outside options

Caterina Calsamiglia (), Francisco Martínez-Mora and Antonio Miralles ()
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Caterina Calsamiglia: ICREA
Antonio Miralles: Università degli Studi di Messina

Social Choice and Welfare, 2021, vol. 57, issue 3, No 4, 557-566

Abstract: Abstract Most environments where assignment mechanisms (possibly random) are used are such that participants have outside options. For instance private schools and private housing are options that participants in a public choice or public housing assignment problems may have. We postulate that, in cardinal mechanisms, chances inside the assignment process could favor agents with better outside options. By imposing a robustness to outside options condition, we conclude that, on the universal domain of cardinal preferences, any mechanism must be (interim) ordinal.

Date: 2021
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DOI: 10.1007/s00355-021-01328-9

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Social Choice and Welfare is currently edited by Bhaskar Dutta, Marc Fleurbaey, Elizabeth Maggie Penn and Clemens Puppe

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