Characterizations of the Probabilistic Serial Mechanism

26 Pages Posted: 7 May 2010 Last revised: 25 Apr 2011

Date Written: April 23, 2011

Abstract

This paper provides two axiomatizations of the probabilistic serial mechanism. First, the mechanism is characterized by ordinal efficiency, envy-freeness, and truncation robustness. Truncation robustness restricts changes in assignments when agents truncate their preference lists. In this characterization, ordinal efficiency and envy-freeness can be replaced with weaker axioms, 2-ordinal efficiency and weak envy-freeness. Second, the mechanism is characterized by ordinal efficiency, independence of unassigned objects (IUO), and Rawlsian criterion. IUO requires assignments to be independent of whether an agent reports an object as acceptable or not, when she has no chance to obtain it even if she does so. Rawlsian criterion is a fairness condition that specifies how a mechanism should treat the worst-off agent.

Keywords: Random Assignment, Probabilistic Serial Mechanism

JEL Classification: C70, D61, D63

Suggested Citation

Hashimoto, Tadashi and Hirata, Daisuke, Characterizations of the Probabilistic Serial Mechanism (April 23, 2011). Available at SSRN: https://ssrn.com/abstract=1601178 or http://dx.doi.org/10.2139/ssrn.1601178

Tadashi Hashimoto (Contact Author)

Yeshiva University ( email )

500 West 185th Street
New York, NY NEW YORK 10033
United States

Daisuke Hirata

Hitotsubashi University ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

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