Assignment markets for homogeneous goods when homogeneity is heterogeneous across buyers

Abstract

We introduce the notion of heterogeneous homogeneity in the assignment market by Shapley and Shubik (1971). This notion is useful for market design in the situation where each buyer has his/her own set of homogeneous goods but the sets can be heterogeneous across buyers. In the market where the system of the sets satisfies a certain nested condition, we design a fast algorithm that achieves a competitive equilibrium and analyze its property.

Keywords: Heterogeneous homogeneity, assignment market, double auction, equilibrium algorithm, call auction JEL numbers: D47, D44, C78, C71