Serial dictatorship mechanisms with reservation prices

B-Tier
Journal: Economic Theory
Year: 2020
Volume: 70
Issue: 3
Pages: 665-684

Authors (2)

Bettina Klaus (Université de Lausanne) Alexandru Nichifor (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Abstract We propose a new set of mechanisms, which we call serial dictatorship mechanisms with individual reservation prices for the allocation of homogeneous indivisible objects, e.g., specialist clinic appointments. We show that a mechanism $$\varphi $$ φ satisfies minimal tradability, individual rationality, strategy-proofness, consistency, independence of unallocated objects, and non-wasteful tie-breaking if and only if there exists a reservation price vector r and a priority ordering $$\succ $$ ≻ such that $$\varphi $$ φ is a serial dictatorship mechanism with reservation prices based on r and $$\succ $$ ≻ . We obtain a second characterization by replacing individual rationality with non-imposition. In both our characterizations r, $$\succ $$ ≻ , and $$\varphi $$ φ are all found simultaneously and endogenously from the properties. Finally, we illustrate how our model, mechanism, and results capture the normative requirements governing the functioning of some real-life markets and the mechanisms that these markets use.

Technical Details

RePEc Handle
repec:spr:joecth:v:70:y:2020:i:3:d:10.1007_s00199-019-01223-6
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25