Random assignments on preference domains with a tier structure

• Main Authors: LIU, Peng, ZENG, Huaxia
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Random Assignment; sd-strategy-proof; sd-efficient; sd-envy-free; equal-treatment-of-equals; Economic Theory
• Online Access: https://ink.library.smu.edu.sg/soe_research/1860; https://ink.library.smu.edu.sg/context/soe_research/article/2860/viewcontent/Random_Assignments_on_Preference_Domains_with_a_Tier_Structure.pdf
• Institution: Singapore Management University

We address a standard random assignment problem (Bogomolnaia and Moulin (2001)) and search forsd-strategy-proof, sd-efficient and sd-envy-free or equal-treatment-of-equals rules.Our main result is that on a connected domain (Sato (2013)),if there exists a rule satisfying these axioms, this domain is endowed with a restricted tier structure.Furthermore, we show that, on such a domain, the Probabilistic Serial rule is the unique rulethat satisfies these axioms.As an extension, we introduce outside options to the model, and establish the same characterizations.