Le, Phuong (2013): Competitive Equilibrium in the Random Assignment Problem.
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Abstract
This paper studies the problem of random assignment with fractional endowments. Fractional endowments complicate matters because the assignment has to make an agent weakly better off than his endowment. I first formulate an exchange economy that resembles the random assignment problem and prove the existence of competitive equilibrium in this economy. I then propose a pseudo-market mechanism for the random assignment problem that is based on the competitive equilibrium. This mechanism is individually rational, Pareto Optimal and justified envy-free but not incentive compatible.
Item Type: | MPRA Paper |
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Original Title: | Competitive Equilibrium in the Random Assignment Problem |
Language: | English |
Keywords: | Random Assignment, Competitive Equilibrium, Mechanism Design |
Subjects: | D - Microeconomics > D4 - Market Structure, Pricing, and Design > D47 - Market Design D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General |
Item ID: | 66624 |
Depositing User: | Phuong Le |
Date Deposited: | 15 Sep 2015 06:56 |
Last Modified: | 29 Sep 2019 04:40 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/66624 |
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Competitive Equilibrium in the Random Assignment Problem. (deposited 28 Aug 2015 05:13)
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