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Pair-efficient reallocation of indivisible objects

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  • Ekici, Özgün

    (Department of Economics, Ozyegin University, Istanbul, Turkey)

Abstract

We revisit the classical object reallocation problem under strict preferences. When attention is constrained to the set of Pareto-efficient rules, it is known that top trading cycles (TTC) is the only rule that is strategyproof and individually-rational. We relax this constraint and consider pair-efficiency. A rule is pair-efficient if it never induces an allocation at which a pair of agents gain from trading their assigned objects. Remarkably, even in the larger set of pair-efficient rules, we find that TTC is still the only rule that is strategyproof and individually-rational. Our characterization result gives strong support to the use of TTC in object reallocation problems.

Suggested Citation

  • Ekici, Özgün, 2024. "Pair-efficient reallocation of indivisible objects," Theoretical Economics, Econometric Society, vol. 19(2), May.
    • Handle: RePEc:the:publsh:5471
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    References listed on IDEAS

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    Cited by:

    1. Ekici, Özgün & Sethuraman, Jay, 2024. "Characterizing the TTC rule via pair-efficiency: A short proof," Economics Letters, Elsevier, vol. 234(C).
    2. Morrill, Thayer & Roth, Alvin E., 2024. "Top trading cycles," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    3. Di Feng & Jacob Coreno, 2024. "Justified Fairness in House Allocation Problems: two Characterizations of Strategy-proof Mechanisms," Papers 2407.14101, arXiv.org.
    4. Afacan, Mustafa Oğuz, 2023. "A characterization of Top Trading Cycles under trading networks," Economics Letters, Elsevier, vol. 233(C).

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    More about this item

    Keywords

    Indivisible object; pair-efficient; strategyproof; individually-rational; Top trading cycles;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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