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Tract Housing, The Core, And Pendulum Auctions

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  • Andrew MACKENZIE
  • Yu ZHOU

Abstract

We consider a model of tract housing where buyers and sellers have (i) wealth constraints, and (ii) unit demand over identical indivisible objects represented by a valuation. First, we characterize the strong core. Second, we characterize the bilat- eral weak core, or the weak core allocations with no side-payments. Finally, when buyer wealth constraints and valuations are private information and when trans- fers are discrete, we introduce two families of pendulum auctions, both of which consist of obviously strategy-proof selections of the bilateral weak core. The buyer- optimal pendulum auctions are preferred by the buyers but are inefficient when side-payments are possible, while the efficient pendulum auctions are efficient

Suggested Citation

  • Andrew MACKENZIE & Yu ZHOU, 2022. "Tract Housing, The Core, And Pendulum Auctions," Discussion papers e-22-005, Graduate School of Economics , Kyoto University.
    • Handle: RePEc:kue:epaper:e-22-005
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    File URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-005.pdf
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    References listed on IDEAS

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    Cited by:

    1. Zhou, Yu & Serizawa, Shigehiro, 2023. "Multi-object auction design beyond quasi-linearity: Leading examples," Games and Economic Behavior, Elsevier, vol. 140(C), pages 210-228.

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    More about this item

    Keywords

    tract housing; core; pendulum auction; almost-synchronized equilibrium; private wealth constraints; efficiency; obvious strategy-proofness;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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