Session 2: Incentives and Top Trading Cycles

Nick Arnosti

2022/01/24

Lesson Recap

Materials

Lecture Slides (pptx version available to instructors upon request).

Homework (solutions available to instructors upon request).

References:

Introduction to Top Trading Cycles: On Cores and Indivisibility

Proof that there is a unique core allocation: Weak Versus Strong Domination in a Market with Indivisible Goods

Proof that Top Trading Cycles is truthful: Incentive Compatibility in a Market with Indivisible Goods

Proof that Top Trading Cycles is the only mechanism that is Pareto efficient, individually rational, and truthful: Strategy-Proofness and the Strict Core in a Market with Indivisibilities