학술논문

Efficiency in random allocation with ordinal rules
Document Type
Working Paper
Source
Subject
Economics - Theoretical Economics
Language
Abstract
We study ordinal rules for allocating indivisible goods via lottery. Ordinality requires a rule to consider only how agents rank degenerate lotteries and may be necessitated by cognitive, informational, or as we show, incentive constraints. The limited responsiveness of ordinal rules to agents' preferences means that they can only satisfy welfare properties based on first order stochastic dominance, which is incomplete. We define a new efficiency concept for ordinal rules. While ordinality and efficiency together are incompatible with the usual notions of fairness and somewhat limit randomization, they do leave room for a rich class of rules. We demonstrate this through a characterization of all ordinal, efficient, strategy-proof, non-bossy, boundedly invariant, and neutral rules.