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arXiv · 2503.18144

Shapley-Scarf Markets with Objective Indifferences

Will Sandholtz·Andrew Tai
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Abstract

Top trading cycles with fixed tie-breaking (TTC) has been suggested to deal with indifferences in object allocation problems. Unfortunately, under general indifferences, TTC is neither Pareto efficient nor group strategy-proof. Furthermore, it may not select an allocation in the core of the market, even when the core is non-empty. However, when indifferences are agreed upon by all agents (``objective indifferences''), TTC maintains Pareto efficiency, group strategy-proofness, and core selection. Further, we characterize objective indifferences as the most general setting where TTC maintains these properties.

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Will Sandholtz, Andrew Tai. 2025-03-23. Shapley-Scarf Markets with Objective Indifferences. https://arxiv.org/abs/2503.18144

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