Fairness and efficiency for probabilistic allocations with endowments

Paper Number: 
1434
Creation date: 
12/19/2017
Abstract: 

We propose to use endowments as a policy instrument in market design, so as to ensure that agents have the right to enjoy certain resources. For example, in school choice, endowments can guarantee children a chance of admission to high-quality schools. We introduce a notion of justi ed envy adapted to allocation problems with endowments, and show that fairness (understood as the absence of justi ed envy) can be obtained together with eciency and individual rationality.

Paper Length: 
20
Keywords: 
School choice; fairness; Walrasian equilibrium; Knaster-Kuratowski-Mazurkiewicz Lemma
Paper: