English

Fast Core Identification

Computer Science and Game Theory 2026-04-30 v1 Theoretical Economics Trading and Market Microstructure

Abstract

This paper examines the computational complexity of the \emph{Core Identification Problem} (CIP) in one-sided matching markets governed by the Top Trading Cycles (TTC) algorithm. The central contribution is a formal complexity separation: this paper proves that identifying which agents receive a core allocation is strictly easier than computing the full TTC allocation. Specifically, we show that CIP can be solved in \bigOLn\bigO{Ln} time, where LL is the maximum number of preferences reported per agent, by computing the leading eigenvector of a preference-derived Markov transition matrix via randomized SVD\@. For sparse preference profiles (L=\bigO1L = \bigO{1}, as in the NYC school choice where L=12L = 12), this yields an algorithm \bigOn\bigO{n}. This result strictly improves on the \bigOnlogn\bigO{n \log n} complexity of the full TTC allocation (\cite{SabanSethuraman2013}) and matches the \Omgn\Omg{n} information-theoretic lower bound, establishing asymptotic optimality. The method inherits all properties of TTC: Pareto efficiency, individual rationality, and strategy-proofness, and is robust to preference noise for sufficiently large~nn.

Keywords

Cite

@article{arxiv.2604.25954,
  title  = {Fast Core Identification},
  author = {Irene Aldridge},
  journal= {arXiv preprint arXiv:2604.25954},
  year   = {2026}
}

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23 pages