Robust Market Design with Opaque Announcements
Theoretical Economics
2024-08-09 v1
Abstract
We introduce a framework where the announcements of a clearinghouse about the allocation process are opaque in the sense that there can be more than one outcome compatible with a realization of type reports. We ask whether desirable properties can be ensured under opacity in a robust sense. A property can be guaranteed under an opaque announcement if every mechanism compatible with it satisfies the property. We find an impossibility result: strategy-proofness cannot be guaranteed under any level of opacity. In contrast, in some environments, weak Maskin monotonicity and non-bossiness can be guaranteed under opacity.
Keywords
Cite
@article{arxiv.2408.04509,
title = {Robust Market Design with Opaque Announcements},
author = {Aram Grigoryan and Markus Möller},
journal= {arXiv preprint arXiv:2408.04509},
year = {2024}
}