Abstract
When allocating indivisible objects, agents might have equal priority rights for some objects. A common practice is to break the ties using a lottery and randomize over deterministic mechanisms. Such randomizations usually lead to unfairness and inefficiency ex-ante. We propose a concept of ex-ante fairness and show the existence of an agent-optimal ex-ante fair solution. Ex- ante fair random allocations are generated using allocation by division, a new method of generating random allocations from deterministic mechanisms. Insights from the two-sided matching theory and the recent random assignment literature are unified and extended. The set of ex-ante fair random allocations forms a complete lattice under first-order stochastic dominance relations. The agent-optimal ex-ante fair mechanism includes both the deferred acceptance algorithm and the probabilistic serial mechanism as special cases.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
