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Sequential Rules for House Allocation with Price Restrictions

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Abstract
This paper considers a housing market with price restrictions. On such market, price equilibrium may be excluded for certain preference profiles. However, the existence of a unique minimal rationing price equilibrium has previously been established on a general preference domain that contains “almost all” preference profiles. This type of equilibrium has been demonstrated to be an important ingredient in a direct and strategy-proof allocation mechanism for housing markets with price restrictions. The main contribution of this paper is to provide a finite ascending price sequence that terminates to a minimal rationing price equilibrium. This sequence is demonstrated to play a key-role in an Iterative English Auction Rule for housing markets with price restrictions.

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  • Andersson, Tommy & Svensson, Lars-Gunnar, 2015. "Sequential Rules for House Allocation with Price Restrictions," Working Papers 2015:18, Lund University, Department of Economics, revised 11 Oct 2017.
    • Handle: RePEc:hhs:lunewp:2015_018
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    Cited by:

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    3. Tommy Andersson & Lars Ehlers, 2022. "An algorithm for identifying least manipulable envy‐free and budget‐balanced allocations in economies with indivisibilities," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 50-60, March.
    4. Yu Zhou & Shigehiro Serizawa, 2019. "Minimum price equilibrium in the assignment market," ISER Discussion Paper 1047, Institute of Social and Economic Research, Osaka University.

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    More about this item

    Keywords

    Rationing Price Equilibrium; (Extended) English Price Sequences; Iterative English Auction Rule;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing

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