Random assignments and outside options
journal contributionposted on 2021-04-30, 09:49 authored by C Calsamiglia, F Martínez-Mora, A Miralles
Most environments where assignment mechanisms (possibly random) are used are such that participants have outside options. For instance private schools and private housing are options that participants in a public choice or public housing assignment problems may have. We postulate that, in cardinal mechanisms, chances inside the assignment process could favor agents with better outside options. By imposing a robustness to outside options condition, we conclude that, on the universal domain of cardinal preferences, any mechanism must be (interim) ordinal.
CitationSoc Choice Welf (2021). https://doi.org/10.1007/s00355-021-01328-9
Author affiliationSchool of Business
- AM (Accepted Manuscript)