Interesting...
Endowments, Exclusion, and Exchange
Ivan Balbuzanov, Maciej H. Kotowski
ECONOMETRICA: SEP 2019, VOLUME 87, ISSUE 5
Abstract: We propose a new solution for discrete exchange economies and resource-allocation problems, the exclusion core. The exclusion core rests upon a foundational idea in the legal understanding of property, the right to exclude others. By reinterpreting endowments as a distribution of exclusion rights, rather than as bundles of goods, our analysis extends to economies with qualified property rights, joint ownership, and social hierarchies. The exclusion core is characterized by a generalized top trading cycle algorithm in a large class of economies, including those featuring private, public, and mixed ownership. It is neither weaker nor stronger than the strong core.
"Our key contribution is the development of a new solution concept for discrete exchange economies and allocation problems, which we call the exclusion core. The exclusion core’s foundation is a reinterpretation of endowments in an exchange economy as a distribution of exclusion rights, rather than as bundles of things to trade. A simple idea—the ability to exclude others from goods in one’s own endowment—offers reallocation possibilities that are absent from traditional core solutions and is at the heart of the exclusion core’s rationale and predictive power. We formulate the exclusion core and analyze its properties in economies with single-unit demand, indivisible goods, and no transfers.
...
" we show that the exclusion core has a close association with David Gale’s top
trading cycle (TTC) algorithm (Shapley and Scarf (1974)). Beyond its theoretical elegance, the TTC algorithm is of substantial practical importance. Suitably generalized, it underpins implemented or proposed solutions to many market-design problems, including transplant organ exchange (Roth, Sönmez, and Ünver (2004)), student-school assignment (Abdulkadiro˘glu and Sönmez (2003)), airport landing-slot allocation (Schummer and Vohra (2013)), and refugee resettlement (Delacrétaz, Kominers, and Teytelboym (2016)). A generalized TTC algorithm characterizes the exclusion core in a large class of economies, including those with private, public, and mixed ownership."
Endowments, Exclusion, and Exchange
Ivan Balbuzanov, Maciej H. Kotowski
ECONOMETRICA: SEP 2019, VOLUME 87, ISSUE 5
Abstract: We propose a new solution for discrete exchange economies and resource-allocation problems, the exclusion core. The exclusion core rests upon a foundational idea in the legal understanding of property, the right to exclude others. By reinterpreting endowments as a distribution of exclusion rights, rather than as bundles of goods, our analysis extends to economies with qualified property rights, joint ownership, and social hierarchies. The exclusion core is characterized by a generalized top trading cycle algorithm in a large class of economies, including those featuring private, public, and mixed ownership. It is neither weaker nor stronger than the strong core.
"Our key contribution is the development of a new solution concept for discrete exchange economies and allocation problems, which we call the exclusion core. The exclusion core’s foundation is a reinterpretation of endowments in an exchange economy as a distribution of exclusion rights, rather than as bundles of things to trade. A simple idea—the ability to exclude others from goods in one’s own endowment—offers reallocation possibilities that are absent from traditional core solutions and is at the heart of the exclusion core’s rationale and predictive power. We formulate the exclusion core and analyze its properties in economies with single-unit demand, indivisible goods, and no transfers.
...
" we show that the exclusion core has a close association with David Gale’s top
trading cycle (TTC) algorithm (Shapley and Scarf (1974)). Beyond its theoretical elegance, the TTC algorithm is of substantial practical importance. Suitably generalized, it underpins implemented or proposed solutions to many market-design problems, including transplant organ exchange (Roth, Sönmez, and Ünver (2004)), student-school assignment (Abdulkadiro˘glu and Sönmez (2003)), airport landing-slot allocation (Schummer and Vohra (2013)), and refugee resettlement (Delacrétaz, Kominers, and Teytelboym (2016)). A generalized TTC algorithm characterizes the exclusion core in a large class of economies, including those with private, public, and mixed ownership."
Posts
No comments:
Post a Comment