The probabilistic rank random assignment rule and its axiomatic characterization
Theoretical Economics
2021-04-20 v1
Abstract
This paper considers the problem of randomly assigning a set of objects to a set of agents based on the ordinal preferences of agents. We generalize the well-known immediate acceptance algorithm to the afore-mentioned random environments and define the probabilistic rank rule (PR rule). We introduce two new axioms: sd-rank-fairness, and equal-rank envy-freeness. Sd-rank-fairness implies sd-efficiency. Equal-rank envy-freeness implies equal treatment of equals. Sd-rank-fairness and equal-rank envy-freeness are enough to characterize the PR rule.
Cite
@article{arxiv.2104.09165,
title = {The probabilistic rank random assignment rule and its axiomatic characterization},
author = {Yajing Chen and Patrick Harless and Zhenhua Jiao},
journal= {arXiv preprint arXiv:2104.09165},
year = {2021}
}