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The impossibility of strategy-proof, Pareto efficient, and individually rational rules for fractional matching

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  • Alva, Samson
  • Manjunath, Vikram

Abstract

For a model of fractional matching, interpreted as probabilistic matching, together with the allocation of non-negative amounts of money, we show that strategy-proofness, ex post Pareto efficiency of the matching, and a weak version of ex ante individual rationality are incompatible when each agent's utility is a linear function of both their fractional assignment and money. We identify some avenues to escape this impossibility.

Suggested Citation

  • Alva, Samson & Manjunath, Vikram, 2020. "The impossibility of strategy-proof, Pareto efficient, and individually rational rules for fractional matching," Games and Economic Behavior, Elsevier, vol. 119(C), pages 15-29.
    • Handle: RePEc:eee:gamebe:v:119:y:2020:i:c:p:15-29
    DOI: 10.1016/j.geb.2019.09.009
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    Cited by:

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    2. Di Feng, 2023. "Efficiency in Multiple-Type Housing Markets," Papers 2308.14989, arXiv.org, revised Dec 2023.

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    More about this item

    Keywords

    Fractional; Matching; Strategy-proofness; Pareto efficiency; Individual rationality;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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