Efficiency, Justified Envy, and Incentives in Priority-Based Matching

A-Tier
Journal: American Economic Review: Insights
Year: 2020
Volume: 2
Issue: 4
Pages: 425-42

Authors (5)

Atila Abdulkadiroğlu (not in RePEc) Yeon-Koo Che (not in RePEc) Parag A. Pathak (National Bureau of Economic Re...) Alvin E. Roth (Stanford University) Olivier Tercieux (not in RePEc)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Top trading cycles (TTC ) is Pareto efficient and strategy-proof in priority-based matching, but so are other mechanisms including serial dictatorship. We show that TTC minimizes justified envy among all Pareto-efficient and strategy-proof mechanisms in one-to-one matching. In many-to-one matching, TTC admits less justified envy than serial dictatorship in an average sense. Empirical evidence from New Orleans OneApp and Boston Public Schools shows that TTC has significantly less justified envy than serial dictatorship.

Technical Details

RePEc Handle
repec:aea:aerins:v:2:y:2020:i:4:p:425-42
Journal Field
General
Author Count
5
Added to Database
2026-01-25