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Sequential Rules for House Allocation with Price Restrictions

Andersson, Tommy LU and Svensson, Lars-Gunnar LU (2015) In Working Paper / Department of Economics, School of Economics and Management, Lund University
Abstract
This paper considers a housing market with price restrictions. On such markets, the existence of a unique minimum rationing equilibrium price vector has been established for each preference profile on a general preference domain that contains almost all preference profiles. This vector can be used as a key ingredient in a direct and strategy-proof allocation mechanism. The main contribution of this paper is to provide two price sequences, one with increasing prices and one with decreasing prices, that both terminate to a minimal rationing equilibrium price vector in a finite number of steps. These sequences are demonstrated to play key-roles in an English auction and a Dutch auction, respectively, for the considered housing market with... (More)
This paper considers a housing market with price restrictions. On such markets, the existence of a unique minimum rationing equilibrium price vector has been established for each preference profile on a general preference domain that contains almost all preference profiles. This vector can be used as a key ingredient in a direct and strategy-proof allocation mechanism. The main contribution of this paper is to provide two price sequences, one with increasing prices and one with decreasing prices, that both terminate to a minimal rationing equilibrium price vector in a finite number of steps. These sequences are demonstrated to play key-roles in an English auction and a Dutch auction, respectively, for the considered housing market with price restrictions. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Price sequence, auction rules, rationing, rationing equilibrium price
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
issue
18
pages
23 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
3a939e0c-3113-42de-a77a-0d234af1e05e (old id 7370272)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2015_018.htm
date added to LUP
2015-06-18 10:13:16
date last changed
2016-04-16 07:51:39
@misc{3a939e0c-3113-42de-a77a-0d234af1e05e,
  abstract     = {This paper considers a housing market with price restrictions. On such markets, the existence of a unique minimum rationing equilibrium price vector has been established for each preference profile on a general preference domain that contains almost all preference profiles. This vector can be used as a key ingredient in a direct and strategy-proof allocation mechanism. The main contribution of this paper is to provide two price sequences, one with increasing prices and one with decreasing prices, that both terminate to a minimal rationing equilibrium price vector in a finite number of steps. These sequences are demonstrated to play key-roles in an English auction and a Dutch auction, respectively, for the considered housing market with price restrictions.},
  author       = {Andersson, Tommy and Svensson, Lars-Gunnar},
  keyword      = {Price sequence,auction rules,rationing,rationing equilibrium price},
  language     = {eng},
  number       = {18},
  pages        = {23},
  publisher    = {ARRAY(0x7beeeb8)},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {Sequential Rules for House Allocation with Price Restrictions},
  year         = {2015},
}