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Some characterizations of Generalized Top Trading Cycles

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  • Altuntaş, Açelya
  • Phan, William
  • Tamura, Yuki

Abstract

Consider object exchange problems when each agent may be endowed with and consume more than one object. For most domains of preferences, no rule satisfies efficiency, the endowment lower bound, and strategy-proofness. Insisting on the first two properties, we explore the extent to which weaker incentive compatibility can be achieved. Motivated by behavioral and computational considerations as well as online mechanisms, we define several forms of manipulation. We consider the lexicographic domain of preferences, and provide several characterizations of Generalized Top Trading Cycles based on properties concerning immunity from heuristic and identity-splitting manipulations. We also show that this establishes a boundary with respect to incentive compatibility—minimal strengthening results in impossibility.

Suggested Citation

  • Altuntaş, Açelya & Phan, William & Tamura, Yuki, 2023. "Some characterizations of Generalized Top Trading Cycles," Games and Economic Behavior, Elsevier, vol. 141(C), pages 156-181.
    • Handle: RePEc:eee:gamebe:v:141:y:2023:i:c:p:156-181
    DOI: 10.1016/j.geb.2023.05.004
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    1. 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

    Behavioral market design; Endowment manipulation; Heuristic manipulation; Strategy-proofness; Object exchange; Generalized Top Trading Cycles;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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