Download This PaperJob Rotation: Core and Mechanism
12 Pages Posted: 4 Jun 2020 Last revised: 17 Sep 2020
Date Written: September 17, 2020
Abstract
Yu and Zhang (2020) propose a job rotation model to study rotation schemes that
widely exist in real life. In the model agents’ rights to consume own endowments
are restricted, but their rights to trade endowments are unrestricted. This poses an
interesting contrast with the housing market model of Shapley and Scarf (1974). Recognizing
restricted property right in the job rotation model, in this paper we define
a solution called the rotation core in the same flavor of the core in the housing market
model. It turns out that the rotation core is nonempty, single-valued, and found by a
strategy-proof variant of Top Trading Cycle (TTC). This generalizes the well-known
result that TTC finds the unique core allocation in the housing market model.
Keywords: job rotation, core, Top Trading Cycle
JEL Classification: C71, C78, D78
Suggested Citation: Suggested Citation