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Efficient lottery design

Author

Listed:
  • Onur Kesten

    (Carnegie Mellon University)

  • Morimitsu Kurino

    (University of Tsukuba)

  • Alexander S. Nesterov

    (WZB)

Abstract

There has been a surge of interest in stochastic assignment mechanisms that have proven to be theoretically compelling thanks to their prominent welfare properties. Contrary to stochastic mechanisms, however, lottery mechanisms are commonly used in real life for indivisible goods allocation. To help facilitate the design of practical lottery mechanisms, we provide new tools for obtaining stochastic improvements in lotteries. As applications, we propose lottery mechanisms that improve upon the widely used random serial dictatorship mechanism and a lottery representation of its competitor, the probabilistic serial mechanism. The tools we provide here can be useful in developing welfare-enhanced new lottery mechanisms for practical applications such as school choice.

Suggested Citation

  • Onur Kesten & Morimitsu Kurino & Alexander S. Nesterov, 2017. "Efficient lottery design," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(1), pages 31-57, January.
    • Handle: RePEc:spr:sochwe:v:48:y:2017:i:1:d:10.1007_s00355-016-0978-8
    DOI: 10.1007/s00355-016-0978-8
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    Cited by:

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    2. Harless, Patrick, 2019. "Efficient rules for probabilistic assignment," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 107-116.
    3. Shende, Priyanka & Purohit, Manish, 2023. "Strategy-proof and envy-free mechanisms for house allocation," Journal of Economic Theory, Elsevier, vol. 213(C).
    4. Basteck, Christian, 2018. "Fair solutions to the random assignment problem," Journal of Mathematical Economics, Elsevier, vol. 79(C), pages 163-172.

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    More about this item

    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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