Abstract:
New fairness notions aligned with the merit principle are proposed for
designing exchange rules. We show that for an obviously strategy-proof,
efficient and individually rational rule, (i) an agent receives her
favorite object when others unanimously perceive her object the best, if
and only if preferences are single-peaked, and (ii) an upper bound on
fairness attainable is that, if two agents' objects are considered the
best by all agents partitioned evenly into two groups, it is guaranteed
that one, not both, gets her favorite object. This indicates an
unambiguous trade-off between incentives and fairness in the design of
exchange rules.
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