Pairwise efficiency and monotonicity imply Pareto efficiency in (probabilistic) object allocation

We consider object allocation problems with capacities (see, e.g., Abdulkadiroglu and Sonmez, 1998; Basteck, 2025) where objects have to be assigned to agents. We show that if a lottery rule satisfies ex-post non-wastefulness and probabilistic (Maskin) monotonicity, then ex-post pairwise efficiency is equivalent to ex-post Pareto efficiency. This result allows for a strengthening of various existing characterization results, both for lottery rules and deterministic rules, by replacing (ex-post) Pareto efficiency with (ex-post) pairwise efficiency, e.g., for characterizations of the Random Serial Dictatorship rule (Basteck, 2025), Trading Cycles rules (Pycia and Unver, 2017), and Hierarchical Exchange rules (Papai, 2000).

Publication Details

Journal
ArXiv.org
Published
2025-08-07
Primary Topic
Game Theory and Voting Systems
Type
article
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article

Pairwise efficiency and monotonicity imply Pareto efficiency in (probabilistic) object allocation

ArXiv.org
Game Theory and Voting Systems
article

Pairwise efficiency and monotonicity imply Pareto efficiency in (probabilistic) object allocation

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Abstract

We consider object allocation problems with capacities (see, e.g., Abdulkadiroglu and Sonmez, 1998; Basteck, 2025) where objects have to be assigned to agents. We show that if a lottery rule satisfies ex-post non-wastefulness and probabilistic (Maskin) monotonicity, then ex-post pairwise efficiency is equivalent to ex-post Pareto efficiency. This result allows for a strengthening of various existing characterization results, both for lottery rules and deterministic rules, by replacing (ex-post) Pareto efficiency with (ex-post) pairwise efficiency, e.g., for characterizations of the Random Serial Dictatorship rule (Basteck, 2025), Trading Cycles rules (Pycia and Unver, 2017), and Hierarchical Exchange rules (Papai, 2000).

ArXiv.org
Openalex Percentile: Top 40%
Game Theory and Voting Systems
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Pairwise efficiency and monotonicity imply Pareto efficiency in (probabilistic) object allocation · ArXiv.org (2025) | TGRS Research Map | TGRS