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Priority-augmented House Allocation

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  • Xiang Han

    (Southern Methodist University)

Abstract

We consider the standard indivisible object allocation problem without monetary transfer and allow each object to have a weak priority over agents. It is well known that generally in such a problem stability (or no justified-envy) is not compatible with efficiency. We characterize the priority structures for which a stable and efficient assignment always exists, as well as the priority structures which admit a stable, efficient and (group) strategy-proof rule. While house allocation and housing market are two classical allocation problems that admit a stable, efficient and group strategy-proof rule, any priority-augmented allocation problem with more than three objects admits such a rule if and only if it is decomposable into a sequence of subproblems, each of which has the house allocation or the housing market structure.

Suggested Citation

  • Xiang Han, 2014. "Priority-augmented House Allocation," Departmental Working Papers 1408, Southern Methodist University, Department of Economics.
    • Handle: RePEc:smu:ecowpa:1408
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Indivisible object; priority; house allocation; housing market; stability; group strategy-proofness;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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