A deferred acceptance mechanism for decentralized, fast, and fair childcare assignment

We design and implement a program-proposing deferred acceptance mechanism with ties (DAT) and apply it to childcare assignment in two German cities. The mechanism can accommodate complementarities in providers' preferences, is fast to terminate even in larger cities, is difficult to manipulate in practice, and produces stable allocations. It can be further sped up by introducing two new features. First, allowing for an arbitrary share of facilities who participate in a centralized manner by submitting a rank-order-list over applicants. Second, by breaking ties in applicants' rank-order-lists on a first-come-first-serve basis, which sets incentives for programs to propose faster. We provide and evaluate simulation results.

Unitary Owen Points in Cooperative Lot-Sizing Models with Backlogging

This paper analyzes cost sharing in uncapacitated lot-sizing models with backlogging and heterogeneous costs. It is assumed that several firms participate in a consortium aiming at satisfying their demand over the planning horizon with minimal operating cost. Each individual firm has its own ordering channel and holding technology, but cooperation with other firms consists in sharing that information. Therefore, the firms that cooperate can use the best ordering channels and holding technology among members of the consortium. This mode of cooperation is stable. in that allocations of the overall operating cost exist, so that no group of agents benefit from leaving the consortium. Our contribution in the current paper is to present a new family of cost sharing allocations with good properties for enforcing cooperation: the unitary Owen points. Necessary and sufficient conditions are provided for the unitary Owen points to belong to the core of the cooperative game. In addition, we provide empirical evidence, through simulation, showing that, in randomly-generated situations, the above condition is fulfilled in 99% of the cases. Additionally, a relationship between lot-sizing games and a certain family of production-inventory games, through Owen’s points of the latter, is described. This interesting relationship enables easily constructing a variety of coalitionally stable allocations for cooperative lot-sizing models.

Graphical One-Sided Markets

We study the problem of allocating indivisible objects to a set of rational agents where each agent's final utility depends on the intrinsic valuation of the allocated item as well as the allocation within the agent's local neighbourhood. We specify agents' local neighbourhood in terms of a weighted graph. This extends the model of one-sided markets to incorporate neighbourhood externalities. We consider the solution concept of stability and show that, unlike in the case of one-sided markets, stable allocations may not always exist. When the underlying local neighbourhood graph is symmetric, a 2-stable allocation is guaranteed to exist and any decentralised mechanism where pairs of rational players agree to exchange objects terminates in such an allocation. We show that computing a 2-stable allocation is PLS-complete and further identify subclasses which are tractable. In the case of asymmetric neighbourhood structures, we show that it is NP-complete to check if a 2-stable allocation exists. We then identify structural restrictions where stable allocations always exist and can be computed efficiently. Finally, we study the notion of envy-freeness in this framework.

EFFECTIVENESS OF CENTRALIZED MECHANISM OF LABOR RESOURCE ALLOCATION – EXPERIMENTAL TESTS

In the article the issue of labor resources allocation in the context of the emerging field of economic sciences known as “market design” was discussed. The assumptions for the designed experimental environment were discussed. An experimental variable and variables dependent on it were defined. The main objective of the paper is to develop a matching mechanism for participants in the experiment as a basis for a broader, centralized resource allocation system in the labor market. The study confirmed the hypothesis that fulfilling the assumptions of stable allocations theory improves the matching efficiency in the labor market and thus reduces the frictional unemployment.