Welfare Theorems for Random Assignments with Priorities
24 Pages Posted: 29 Nov 2017 Last revised: 16 Aug 2019
Date Written: November 25, 2017
We provide priority-constrained versions of the ordinal efficiency welfare theorem for school choice lotteries. Moreover, we show that a constrained version of a cardinal second welfare theorem fails to hold, but can be restored for a relaxed notion of equilibrium with priority-specific prices.
Keywords: Matching; Random Assignments; Priority-based Allocation; Constrained Efficiency; Pseudo-Market; Welfare Theorem
JEL Classification: C78; D47
Suggested Citation: Suggested Citation