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Room assignment-rent division: A market approach

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  • Atila Abdulkadiroğlu
  • Tayfun Sönmez
  • M. Utku Ünver

Abstract

A group of friends consider renting a house but they shall first agree on how to allocate its rooms and share the rent. We propose an auction mechanism for room assignment-rent division problems which mimics the market mechanism. Our auction mechanism is efficient, envy-free, individually-rational and it yields a non-negative price to each room whenever that is possible with envy-freeness. Copyright Springer-Verlag 2004

Suggested Citation

  • Atila Abdulkadiroğlu & Tayfun Sönmez & M. Utku Ünver, 2004. "Room assignment-rent division: A market approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 22(3), pages 515-538, June.
    • Handle: RePEc:spr:sochwe:v:22:y:2004:i:3:p:515-538
    DOI: 10.1007/s00355-003-0231-0
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    Cited by:

    1. Carmen Beviá, 2010. "Manipulation games in economies with indivisible goods," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 209-222, March.
    2. , & , & ,, 2014. "Budget-balance, fairness and minimal manipulability," Theoretical Economics, Econometric Society, vol. 9(3), September.
    3. Azacis, Helmuts, 2008. "Double implementation in a market for indivisible goods with a price constraint," Games and Economic Behavior, Elsevier, vol. 62(1), pages 140-154, January.
    4. Velez, Rodrigo A., 2011. "Are incentives against economic justice?," Journal of Economic Theory, Elsevier, vol. 146(1), pages 326-345, January.
    5. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506, Elsevier.
    6. Andersson, T.D. & Andersson, C. & Talman, A.J.J., 2010. "Sets in Excess Demand in Ascending Auctions with Unit-Demand Bidders," Other publications TiSEM c7482a22-cb73-428b-9cc0-e, Tilburg University, School of Economics and Management.
    7. Tommy Andersson & Lars Ehlers, 2022. "An algorithm for identifying least manipulable envy‐free and budget‐balanced allocations in economies with indivisibilities," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 50-60, March.
    8. Tommy Andersson & Christer Andersson, 2012. "Properties of the DGS-Auction Algorithm," Computational Economics, Springer;Society for Computational Economics, vol. 39(2), pages 113-133, February.
    9. Brown, Alexander L. & Velez, Rodrigo A., 2016. "The costs and benefits of symmetry in common-ownership allocation problems," Games and Economic Behavior, Elsevier, vol. 96(C), pages 115-131.
    10. Fujinaka, Yuji & Wakayama, Takuma, 2015. "Maximal manipulation of envy-free solutions in economies with indivisible goods and money," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 165-185.
    11. Nicolò, Antonio & Velez, Rodrigo A., 2017. "Divide and compromise," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 100-110.
    12. Velez, Rodrigo A., 2015. "Sincere and sophisticated players in an equal-income market," Journal of Economic Theory, Elsevier, vol. 157(C), pages 1114-1129.
    13. Azrieli, Yaron & Shmaya, Eran, 2014. "Rental harmony with roommates," Journal of Economic Theory, Elsevier, vol. 153(C), pages 128-137.
    14. Bumin Yenmez, M., 2012. "Dissolving multi-partnerships efficiently," Journal of Mathematical Economics, Elsevier, vol. 48(2), pages 77-82.

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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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