Swaps on Networks

6 Pages Posted: 22 Feb 2016 Last revised: 29 Feb 2016

Date Written: February 2016

Abstract

A group of agents exchange discrete resources on a network without recourse to monetary transfers. Allowing for an arbitrary network structure, we show that there is a unique core outcome in the exchange problem. This unique outcome may be implemented via a natural extension of Gale’s Top Trading Cycle mechanism, which is shown to be the unique mechanism that is individually strategy-proof, Pareto efficient, and individually rational.

Keywords: networks, Top Trading Cycles, individual strategy-proofness, group strategy-proofness, Pareto efficiency, exchange without transfers

JEL Classification: C78, D78

Suggested Citation

Pycia, Marek, Swaps on Networks (February 2016). Available at SSRN: https://ssrn.com/abstract=2735524 or http://dx.doi.org/10.2139/ssrn.2735524

Marek Pycia (Contact Author)

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

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