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Stability of an allocation of objects

Author

Listed:
  • Murat Yılmaz

    (Boğaziçi University)

  • Özgür Yılmaz

    (Koç University)

Abstract

A central stability notion for allocation problems when there are private endowments is core: no coalition should be able to block the allocation. But, for an exchange economy of discrete resources, core can be empty. An alternative stability axiom is the bargaining set à la Aumann and Maschler (Advances in game theory, Annals of mathematics studies, Princeton University Press, Princeton, pp 443–476, 1964): a blocking by a coalition is justified only if there is no counter-objection to it and an allocation is in the bargaining set if there does not exist a justified blocking. Allowing for weak preferences, we prove that any allocation obtained by the well-known Top Trading Cycles class is in the bargaining set, but not all allocations in the bargaining set can be obtained by this class.

Suggested Citation

  • Murat Yılmaz & Özgür Yılmaz, 2022. "Stability of an allocation of objects," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 561-580, December.
    • Handle: RePEc:spr:reecde:v:26:y:2022:i:4:d:10.1007_s10058-021-00280-5
    DOI: 10.1007/s10058-021-00280-5
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    References listed on IDEAS

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    Cited by:

    1. Morrill, Thayer & Roth, Alvin E., 2024. "Top trading cycles," Journal of Mathematical Economics, Elsevier, vol. 112(C).

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    More about this item

    Keywords

    Assignment problem; Core; Bargaining set; Top trading cycles;
    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
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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