Swaps on Networks
6 Pages Posted: 22 Feb 2016 Last revised: 29 Feb 2016
Date Written: February 2016
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: Suggested Citation