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Object-based unawareness: Theory and applications

Author

Listed:
  • Zhan Wang

    (Southwestern University of Finance and Economics, China)

  • Jinpeng Ma

    (Rutgers University-Camden, USA)

  • Hongwei Zhang

    (Sichuan University, China)

Abstract

Affordable housing lotteries often enforce a rule preventing duplicate lottery entries that makes the model in Hylland and Zeckhauser (1979) (HZ) inapplicable. We revisit HZ and propose a new individually stable (IS) allocation that can be achieved by a Tickets algorithm and accommodate the rule. A strictly envy-free (SEF) allocation is shown to be the unique IS and Pareto-optimal allocation, the outcome of the unique strong Nash equilibrium of a congestion game, and the unique Pseudo market equilibrium allocation in HZ. The algorithm always obtains the unique SEF allocation (if any) and fixes a designed flaw of existing lotteries.

Suggested Citation

  • Zhan Wang & Jinpeng Ma & Hongwei Zhang, 2023. "Object-based unawareness: Theory and applications," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 8(1), pages 1-55, December.
    • Handle: RePEc:jmi:articl:jmi-v8i1a1
    DOI: 10.22574/jmid.2023.12.001
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Affordable housing; lottery allocations; Tickets algorithm.;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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