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Sequential rules for house allocation with price restrictions

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  • Andersson, Tommy
  • Svensson, Lars-Gunnar

Abstract

This paper considers a housing market with price restrictions. On such market, price equilibrium may be excluded for certain preference profiles. However, the existence of a unique minimal rationing price equilibrium has previously been established on a general preference domain that contains “almost all” preference profiles. This type of equilibrium has been demonstrated to be an important ingredient in a direct and strategy-proof allocation mechanism for housing markets with price restrictions. The main contribution of this paper is to provide a finite ascending price sequence that terminates to a minimal rationing price equilibrium. This sequence is demonstrated to play a key-role in an Iterative English Auction Rule for housing markets with price restrictions.

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  • Andersson, Tommy & Svensson, Lars-Gunnar, 2018. "Sequential rules for house allocation with price restrictions," Games and Economic Behavior, Elsevier, vol. 107(C), pages 41-59.
    • Handle: RePEc:eee:gamebe:v:107:y:2018:i:c:p:41-59
    DOI: 10.1016/j.geb.2017.10.027
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    3. Yu Zhou & Shigehiro Serizawa, 2020. "Serial Vickrey Mechanism," ISER Discussion Paper 1095, Institute of Social and Economic Research, Osaka University.
    4. Yu Zhou & Shigehiro Serizawa, 2019. "Minimum price equilibrium in the assignment market," ISER Discussion Paper 1047, Institute of Social and Economic Research, Osaka University.

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    More about this item

    Keywords

    Rationing price equilibrium; (Extended) English Price Sequences; Iterative English Auction Rule;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing

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