Equivalence of efficiency notions for ordinal assignment problems

Wonki Cho, Battal Doğan

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

In ordinal (probabilistic) assignment problems, each agent reports his preference rankings over objects and receives a lottery defined over those objects. A common efficiency notion, sd-efficiency, is obtained by extending the preference rankings to preferences over lotteries by means of (first-order) stochastic dominance. Two alternative efficiency notions, which we call dl- and ul-efficiency, are based on downward and upward lexicographic dominance, respectively. We show that sd-, dl-, and ul-efficiency are all equivalent. Noting that the three efficiency notions are a refinement of ex post efficiency—another well-known efficiency notion—we also identify sufficient and necessary conditions on preference profiles under which ex post efficiency is equivalent to the three notions.

Original languageEnglish
Pages (from-to)8-12
Number of pages5
JournalEconomics Letters
Volume146
DOIs
Publication statusPublished - 2016 Sep 1
Externally publishedYes

Keywords

  • dl-efficiency
  • Ex post efficiency
  • Ordinal assignment problem
  • sd-efficiency
  • ul-efficiency

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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