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Xinquan Hu

Publications and source records attributed to Xinquan Hu.

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Local unanimity in Shapley-Scarf housing markets

In the housing market model introduced by Shapley and Scarf (1974), we propose a new axiom, local unanimity, that extends the unanimity condition widely used in social choice theory. It applies the unanimity condition to any subset of agents in the model who unanimously agree on the best exchange of their endowments. Building on this axiom, we provide several concise characterizations of the Top Trading Cycles (TTC) mechanism under both strict and weak preference domains.

econ.TH

Verifiable affirmative action in centralized school admissions

Governments increasingly operate centralized, algorithm-run admission clearinghouses that implement affirmative action through reserve systems. To sustain public trust, many such clearinghouses disclose category-specific cutoffs, but cutoffs need not allow participants to verify whether reserved and open seats are correctly assigned. We formulate cutoff-based verifiability as a governance constraint on the clearinghouse: each participant must be able to verify her assigned school and seat type using only her own score and the public cutoffs, under two intuitive verification protocols. In a controlled school choice model with multiple reserve categories, we characterize mechanisms that are individually rational, strategy-proof, and verifiable. The characterization identifies deferred acceptance mechanisms induced by two choice rules. We recommend one rule that assigns reserved seats only when a student cannot secure an open seat on merit, so that every reserved-seat assignment reflects genuine affirmative action. The results explain mechanism choices across China's high school admission systems and provide design guidance for affirmative action systems in Brazil and India.

econ.TH