Robust Exchange under Single-Peaked Preferences
18 Pages Posted: 24 Feb 2025 Last revised: 24 Mar 2025
Date Written: February 04, 2025
Abstract
Kamada and Yasuda (2025) consider the standard housing exchange problem of Shapley and Scarf (1974) with a constraint on the cycle size. This paper shows that their impossibility results-there is no mechanism with certain desirable properties-continue to hold under the restricted domain of single-peaked preferences except for some special cases. One important case is where the cycle size is restricted to be at most 2, where we construct a strategy-proof mechanism that always induces a constrained efficient exchange that respects the cycle size constraint.
Keywords: cycle size, efficiency, single-peaked preferences
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