New axioms for top trading cycles
Abstract
School choice is of great importance both in theory and practice. This paper studies the (student-optimal) top trading cycles mechanism (TTCM) in an axiomatic way. We introduce two new axioms: MBG (mutual best group)-quota-rationality and MBG-robust efficiency. While stability implies MBG-quota-rationality, MBG-robust efficiency is weaker than robust efficiency, which is stronger than the combination of efficiency and group strategy-proofness. The TTCM is characterized by MBG-quota-rationality and MBG-robust efficiency. Our results construct a new basis to compare the TTCM with the other school choice mechanisms, especially the student-optimal stable mechanism under Ergin but not Kesten-acyclic priority structures.
- Publication:
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arXiv e-prints
- Pub Date:
- April 2021
- DOI:
- 10.48550/arXiv.2104.09157
- arXiv:
- arXiv:2104.09157
- Bibcode:
- 2021arXiv210409157C
- Keywords:
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- Economics - Theoretical Economics