Strategy-Proofness makes the Difference: Deferred- Acceptance with Responsive Priorities

Details

Serval ID
serval:BIB_6BE4F1D865B8
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Strategy-Proofness makes the Difference: Deferred- Acceptance with Responsive Priorities
Journal
Mathematics of Operations Research
Author(s)
Ehlers L., Klaus B.
ISSN
0364-765X (Print)
1526-5471 (Online)
Publication state
Published
Issued date
11/2014
Peer-reviewed
Oui
Volume
39
Number
4
Pages
949-966
Language
english
Abstract
In college admissions and student placements at public schools, the admission decision can be thought of as assigning indivisible objects with capacity constraints to a set of students such that each student receives at most one object and monetary compensations are not allowed. In these important market design problems, the agent-proposing deferred-acceptance (DA) mechanism with responsive strict priorities performs well, and economists have successfully implemented DA-mechanisms or slight variants thereof. We show that almost all real-life mechanisms used in such environments-including the large classes of priority mechanisms and linear programming mechanisms-satisfy a set of simple and intuitive properties. Once we add strategy-proofness to these properties, DA-mechanisms are the only ones surviving. In market design problems that are based on weak priorities (like school choice), generally multiple tie-breaking (MTB) procedures are used and then a mechanism is implemented with the obtained strict priorities. By adding stability with respect to the weak priorities, we establish the first normative foundation for MTB-DA-mechanisms that are used in New York City.
Keywords
Deferred-acceptance mechanism, Indivisible objects allocation, Multiple tie-breaking, School choice, Strategy-proofness
Web of science
Create date
21/05/2014 16:17
Last modification date
20/08/2019 15:26
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