Goto, Masahiro and Kojima, Fuhito and Kurata, Ryoji and Tamura, Akihisa and Yokoo, Makoto (2015): Designing Matching Mechanisms under General Distributional Constraints. Published in: American Economic Journal: Microeconomics , Vol. 2, No. 9 (May 2017): pp. 226262.
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Abstract
In this paper, we consider twosided, manytoone matching problems where agents in one side of the market (schools) impose some distributional constraints (e.g., a maximum quota for a set of schools), and develop a strategyproof mechanism that can handle a very general class of distributional constraints. We assume distributional constraints are imposed on a vector, where each element is the number of contracts accepted for each school. The only requirement we impose on distributional constraints is that the family of vectors that satisfy distributional constraints must be hereditary, which means if a vector satisfies the constraints, any vector that is smaller than it also satisfies them. When distributional constraints are imposed, a stable matching may not exist. We develop a strategyproof mechanism called Adaptive Deferred Acceptance mechanism (ADA), which is nonwasteful and ``more fair'' than a simple nonwasteful mechanism called the Serial Dictatorship mechanism (SD) and ``less wasteful'' than another simple fair mechanism called the Artificial Cap Deferred Acceptance mechanism (ACDA). We show that we can apply this mechanism even if the distributional constraints do not satisfy the hereditary condition by applying a simple trick, assuming we can find a vector that satisfy the distributional constraints efficiently. Furthermore, we demonstrate the applicability of our model in actual application domains.
Item Type:  MPRA Paper 

Original Title:  Designing Matching Mechanisms under General Distributional Constraints 
Language:  English 
Keywords:  twosided matching, manytoone matching, market design, matching with contracts, matching with constraints, strategyproofness,deferred acceptance 
Subjects:  C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C78  Bargaining Theory ; Matching Theory D  Microeconomics > D6  Welfare Economics > D61  Allocative Efficiency ; CostBenefit Analysis D  Microeconomics > D6  Welfare Economics > D63  Equity, Justice, Inequality, and Other Normative Criteria and Measurement 
Item ID:  78753 
Depositing User:  Prof. Makoto Yokoo 
Date Deposited:  24 Apr 2017 14:36 
Last Modified:  24 Apr 2017 14:36 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/78753 
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Designing Matching Mechanisms under General Distributional Constraints. (deposited 02 May 2015 07:03)
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