A characterization of Top Trading Cycles under trading networks
We consider an object reallocation problem within a specific class of trade restrictions. An agent can only receive the object of someone else connected to him, which is referred to as feasibility. We introduce a Network Augmented Top Trading Cycles (NTTC) mechanism. Our main result shows that a mec...
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Veröffentlicht in: | Economics letters 2023-12, Vol.233, p.111383, Article 111383 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | We consider an object reallocation problem within a specific class of trade restrictions. An agent can only receive the object of someone else connected to him, which is referred to as feasibility. We introduce a Network Augmented Top Trading Cycles (NTTC) mechanism. Our main result shows that a mechanism is NTTC if and only if it is feasible, individually rational, constrained efficient, and strategy-proof.
•We introduce a trading model with a specific class of trade restrictions.•We adapt the Top Trading Cycles mechanism to the problem.•The proposed mechanism is characterized.•The properties in the characterization are independent of each other. |
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ISSN: | 0165-1765 1873-7374 |
DOI: | 10.1016/j.econlet.2023.111383 |