A new solution to the random assignment problem.

A random assignment is ordinally efficient if it is not stochastically dominated with respect to individual preferences over sure objects. Ordinal efficiency implies (is implied by) ex post (ex ante) efficiency. A simple algorithm characterizes ordinally efficient assignments: our solution, probabil...

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Bibliographic Details
Published in:Journal of Economic Theory Vol. 100; no. 2; pp. 295 - 329
Main Authors: Bogomolnaia, Anna, Moulin, Hervé
Format: Article
Published: Academic Press Inc. October 2001
Subjects:
Online Access:View this record in EBSCOhost
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      dt: October 2001
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      pub: Academic Press Inc.
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        atl: A new solution to the random assignment problem.
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          Bogomolnaia, Anna
          Moulin, Hervé
      su:
        Resource allocation -- Mathematical models
        Rational choice theory
        Random variables
      sug:
        subj:
          Resource allocation -- Mathematical models
          Rational choice theory
          Random variables
      ab: A random assignment is ordinally efficient if it is not stochastically dominated with respect to individual preferences over sure objects. Ordinal efficiency implies (is implied by) ex post (ex ante) efficiency. A simple algorithm characterizes ordinally efficient assignments: our solution, probabilistic serial (PS), is a central element within their set. Random priority (RP) orders agents from the uniform distribution, then lets them choose successively their best remaining object. RP is ex post, but not always ordinally, efficient. PS is envy-free, RP is not; RP is strategy-proof, PS is not. Ordinal efficiency, Strategyproofness, and equal treatment of equals are incompatible. Journal of Economic Literature Classification Numbers: C78, D61, D63. Copyright 2001 Academic Press.
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    language: English
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