The Relationship between Top Trading Cycles Mechanism and Top Trading Cycles and Chains Mechanism

Journal of Economic Theory 132 (2007) 539-547

9 Pages Posted: 21 Jan 2015

See all articles by Aradhna Krishna

Aradhna Krishna

University of Michigan, Stephen M. Ross School of Business

Yu Wang

Independent

Date Written: 2007

Abstract

In this paper, we show that there is a relationship between two important matching mechanisms: the Top Trading Cycles mechanism (TTC mechanism proposed by Abdulkadiroglu and Sonmez, 1999) and the Top Trading Cycles and Chains mechanism (TTCC mechanism proposed by Roth, Sonmez, and Unver, 2004). Our main result is that when a specific chain selection rule proposed by Roth et al. is used, these two mechanisms are equivalent. While the equivalence is relevant for one specific case of the TTCC mechanism, it is a particularly interesting case since it is the only version identified by Roth et al. to be both Pareto-efficient and strategy-proof.

Suggested Citation

Krishna, Aradhna and Wang, Yu, The Relationship between Top Trading Cycles Mechanism and Top Trading Cycles and Chains Mechanism (2007). Journal of Economic Theory 132 (2007) 539-547, Available at SSRN: https://ssrn.com/abstract=2552229

Aradhna Krishna (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Yu Wang

Independent ( email )

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