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A Characterization of the Top Trading Cycles Mechanism for the School Choice Problem

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  • Dur, Umut

Abstract

This paper characterizes the top trading cycles mechanism for the school choice problem. Schools may have multiple available seats to be assigned to students. For each school a strict priority ordering of students is determined by the school district. Each student has strict preference over the schools. We first define weaker forms of fairness, consistency and resource monotonicity. We show that the top trading cycles mechanism is the unique Pareto efficient and strategy-proof mechanism that satisfies the weaker forms of fairness, consistency and resource monotonicity. To our knowledge this is the first axiomatic approach to the top trading cycles mechanism in the school choice problem where schools have a capacity greater than one.

Suggested Citation

  • Dur, Umut, 2012. "A Characterization of the Top Trading Cycles Mechanism for the School Choice Problem," MPRA Paper 41366, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41366
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    19. Dur, Umut Mert & Wiseman, Thomas, 2019. "School choice with neighbors," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 101-109.
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    22. Afacan, Mustafa Oǧuz, 2013. "Alternative characterizations of Boston mechanism," Mathematical Social Sciences, Elsevier, vol. 66(2), pages 176-179.
    23. Thomson, William, 2012. "On The Axiomatics Of Resource Allocation: Interpreting The Consistency Principle," Economics and Philosophy, Cambridge University Press, vol. 28(3), pages 385-421, November.
    24. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth, 2009. "Strategy-Proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," American Economic Review, American Economic Association, vol. 99(5), pages 1954-1978, December.
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    Cited by:

    1. Atila Abdulkadiroglu & Yeon-Koo Che & Parag A. Pathak & Alvin E. Roth & Olivier Tercieux, 2017. "Minimizing Justified Envy in School Choice: The Design of New Orleans' OneApp," NBER Working Papers 23265, National Bureau of Economic Research, Inc.
    2. Patrick Harless & William Phan, 2020. "On endowments and indivisibility: partial ownership in the Shapley–Scarf model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(2), pages 411-435, September.
    3. Dur, Umut Mert, 2019. "The modified Boston mechanism," Mathematical Social Sciences, Elsevier, vol. 101(C), pages 31-40.
    4. Umut Mert Dur & M. Utku Unver, 2015. "Two-Sided Matching via Balanced Exchange: Tuition and Worker Exchanges," Koç University-TUSIAD Economic Research Forum Working Papers 1508, Koc University-TUSIAD Economic Research Forum.
    5. Pycia, Marek & Unver, Utku, 2017. "Incentive compatible allocation and exchange of discrete resources," Theoretical Economics, Econometric Society, vol. 12(1), January.
    6. Dur, Umut Mert & Wiseman, Thomas, 2019. "School choice with neighbors," Journal of Mathematical Economics, Elsevier, vol. 83(C), pages 101-109.
    7. Fuhito Kojima & M. Ünver, 2014. "The “Boston” school-choice mechanism: an axiomatic approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 515-544, April.
    8. Nadja Stroh-Maraun, 2020. "Pareto Efficiency in Weighted School Choice Problems," Working Papers Dissertations 64, Paderborn University, Faculty of Business Administration and Economics.
    9. Siwei Chen & Yajing Chen & Chia‐Ling Hsu, 2023. "New axioms for top trading cycles," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1064-1077, October.
    10. Martin Bichler & Alexander Hammerl & Thayer Morrill & Stefan Waldherr, 2021. "How to Assign Scarce Resources Without Money: Designing Information Systems that are Efficient, Truthful, and (Pretty) Fair," Information Systems Research, INFORMS, vol. 32(2), pages 335-355, June.
    11. Harless, Patrick, 2014. "A School Choice Compromise: Between Immediate and Deferred Acceptance," MPRA Paper 61417, University Library of Munich, Germany.
    12. Afacan, Mustafa Oǧuz, 2013. "Alternative characterizations of Boston mechanism," Mathematical Social Sciences, Elsevier, vol. 66(2), pages 176-179.

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    More about this item

    Keywords

    Top Trading Cycles Mechanism; School Choice Problem;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • I20 - Health, Education, and Welfare - - Education - - - General
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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