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arXiv · 2104.09157

New axioms for top trading cycles

Siwei Chen·Yajing Chen·Chia-Ling Hsu
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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.

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Siwei Chen, Yajing Chen, Chia-Ling Hsu. 2021-04-19. New axioms for top trading cycles. https://arxiv.org/abs/2104.09157

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