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Entropy, desegregation, and proportional rationing

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  • Moulin, Hervé

Abstract

An assignment of students to schools displays zero-segregation if all schools have the same distribution of the different types of students (ethnic, geographical, gender). We axiomatize the choice of an optimally desegregated assignment under arbitrary capacity constraints. The celebrated Consistency axiom, together with standard rational choice requirements, identify the choice rule minimizing a canonical index of proportional fairness: the entropy of the assignment matrix. This is an alternative vindication of the Mutual Information index of segregation recently characterized in Frankel and Volij (2011).

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  • Moulin, Hervé, 2016. "Entropy, desegregation, and proportional rationing," Journal of Economic Theory, Elsevier, vol. 162(C), pages 1-20.
    • Handle: RePEc:eee:jetheo:v:162:y:2016:i:c:p:1-20
    DOI: 10.1016/j.jet.2015.12.002
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    References listed on IDEAS

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    1. Frankel, David M. & Volij, Oscar, 2011. "Measuring school segregation," Journal of Economic Theory, Elsevier, vol. 146(1), pages 1-38, January.
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    14. Hervé Moulin & Jay Sethuraman, 2013. "The Bipartite Rationing Problem," Operations Research, INFORMS, vol. 61(5), pages 1087-1100, October.
    15. Eric Budish & Yeon-Koo Che & Fuhito Kojima & Paul Milgrom, 2013. "Designing Random Allocation Mechanisms: Theory and Applications," American Economic Review, American Economic Association, vol. 103(2), pages 585-623, April.
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    Cited by:

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    2. Péter Csóka & P. Jean-Jacques Herings, 2023. "An Axiomatization of the Pairwise Netting Proportional Rule in Financial Networks," CERS-IE WORKING PAPERS 2301, Institute of Economics, Centre for Economic and Regional Studies.
    3. Gabrielle Demange, 2021. "On the resolution of cross-liabilities," Working Papers halshs-03151128, HAL.
    4. Péter Csóka & P. Jean-Jacques Herings, 2021. "An Axiomatization of the Proportional Rule in Financial Networks," Management Science, INFORMS, vol. 67(5), pages 2799-2812, May.
    5. Csóka, Péter, 2017. "Az arányos csődszabály karakterizációja körbetartozások esetén [The characterization of the proportional rule in the case of circular liabilities]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 930-942.
    6. Han, Lining & Juarez, Ruben, 2018. "Free intermediation in resource transmission," Games and Economic Behavior, Elsevier, vol. 111(C), pages 75-84.
    7. Moulin, Herve, 2017. "Consistent bilateral assignment," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 43-55.
    8. Gabrielle Demange, 2020. "Resolution rules in a system of financially linked firms," Working Papers hal-02502413, HAL.
    9. Yoshio Sano & Ping Zhan, 2021. "Extended Random Assignment Mechanisms on a Family of Good Sets," SN Operations Research Forum, Springer, vol. 2(4), pages 1-30, December.

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    More about this item

    Keywords

    Assignment; Bipartite rationing; Proportionality; Segregation; Consistency; Entropy;
    All these keywords.

    JEL classification:

    • D - Microeconomics
    • D - Microeconomics

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