On the integration of Shapley-Scarf housing markets
Theoretical Economics
2022-01-10 v3 Computer Science and Game Theory
Abstract
We study the welfare consequences of merging Shapley--Scarf markets. Market integration can lead to large welfare losses and make the vast majority of agents worse-off, but is on average welfare-enhancing and makes all agents better off ex-ante. The number of agents harmed by integration is a minority when all markets are small or agents' preferences are highly correlated.
Cite
@article{arxiv.2004.09075,
title = {On the integration of Shapley-Scarf housing markets},
author = {Rajnish Kunar and Kriti Manocha and Josue Ortega},
journal= {arXiv preprint arXiv:2004.09075},
year = {2022}
}
Comments
Journal of Mathematical Economics, 2022