TY - JOUR
T1 - An assignment model with local constraints
T2 - Competitive equilibrium and ascending auction
AU - Pan, Lijun
AU - Peng, Linyu
AU - Zhou, Yu
N1 - Funding Information:
Zhou gratefully acknowledges financial support from the Grant-in-aid for Research Activity, Japan Society for the Promotion of Science (19K13653). We thank Dolf Talman for very careful reading and helpful comments.
Publisher Copyright:
© 2019 Elsevier B.V.
PY - 2020/3
Y1 - 2020/3
N2 - We consider an assignment model where each agent has unit-demand quasi-linear preferences and may face some local constraint, i.e., her possible assignment is restricted to a subset of items. Our model takes the assignment models without and with outside options, e.g., Andersson (2007) and Andersson et al. (2013), as special cases. We show that local constraints may lead to the non-existence of competitive equilibrium (CE), and provide a sufficient and necessary condition that ensures its existence. We establish the lattice of CE prices. Besides, an ascending auction is proposed, either finding a CE or validating its non-existence in finitely many steps. It generalizes Andersson et al. (2013)’s auction by adjusting increments stepwise.
AB - We consider an assignment model where each agent has unit-demand quasi-linear preferences and may face some local constraint, i.e., her possible assignment is restricted to a subset of items. Our model takes the assignment models without and with outside options, e.g., Andersson (2007) and Andersson et al. (2013), as special cases. We show that local constraints may lead to the non-existence of competitive equilibrium (CE), and provide a sufficient and necessary condition that ensures its existence. We establish the lattice of CE prices. Besides, an ascending auction is proposed, either finding a CE or validating its non-existence in finitely many steps. It generalizes Andersson et al. (2013)’s auction by adjusting increments stepwise.
KW - Ascending auction
KW - Assignment model
KW - Competitive equilibrium
KW - Existence
KW - Lattice
KW - Local constraints
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U2 - 10.1016/j.econlet.2019.108905
DO - 10.1016/j.econlet.2019.108905
M3 - Article
AN - SCOPUS:85077355223
SN - 0165-1765
VL - 188
JO - Economics Letters
JF - Economics Letters
M1 - 108905
ER -