Two-sided allocation problems, decomposability, and the impossibility of efficient trade
Publication
, Journal Article
Delacrétaz, D; Loertscher, S; Marx, LM; Wilkening, T
Published in: Journal of Economic Theory
January 1, 2019
Previous literature has shown that private information is a transaction cost that prevents efficient reallocation in two-sided setups with bilateral trade or homogeneous goods. We derive conditions under which the impossibility of efficient trade extends to rich environments in which buyers and sellers have multi-dimensional private types, accommodating many-to-many trades and heterogeneous objects. If agents can be decomposed into unit constituents, the allocation problem can be represented as an assignment game and impossibility obtains through a generalization of Shapley's (1962) result that buyers and sellers are complements. We introduce a general family of payoff functions that ensures decomposability and thus impossibility.
Duke Scholars
Published In
Journal of Economic Theory
DOI
EISSN
1095-7235
ISSN
0022-0531
Publication Date
January 1, 2019
Volume
179
Start / End Page
416 / 454
Related Subject Headings
- Economic Theory
- 3803 Economic theory
- 3801 Applied economics
- 1499 Other Economics
- 1401 Economic Theory
Citation
APA
Chicago
ICMJE
MLA
NLM
Delacrétaz, D., Loertscher, S., Marx, L. M., & Wilkening, T. (2019). Two-sided allocation problems, decomposability, and the impossibility of efficient trade. Journal of Economic Theory, 179, 416–454. https://doi.org/10.1016/j.jet.2018.11.004
Delacrétaz, D., S. Loertscher, L. M. Marx, and T. Wilkening. “Two-sided allocation problems, decomposability, and the impossibility of efficient trade.” Journal of Economic Theory 179 (January 1, 2019): 416–54. https://doi.org/10.1016/j.jet.2018.11.004.
Delacrétaz D, Loertscher S, Marx LM, Wilkening T. Two-sided allocation problems, decomposability, and the impossibility of efficient trade. Journal of Economic Theory. 2019 Jan 1;179:416–54.
Delacrétaz, D., et al. “Two-sided allocation problems, decomposability, and the impossibility of efficient trade.” Journal of Economic Theory, vol. 179, Jan. 2019, pp. 416–54. Scopus, doi:10.1016/j.jet.2018.11.004.
Delacrétaz D, Loertscher S, Marx LM, Wilkening T. Two-sided allocation problems, decomposability, and the impossibility of efficient trade. Journal of Economic Theory. 2019 Jan 1;179:416–454.
Published In
Journal of Economic Theory
DOI
EISSN
1095-7235
ISSN
0022-0531
Publication Date
January 1, 2019
Volume
179
Start / End Page
416 / 454
Related Subject Headings
- Economic Theory
- 3803 Economic theory
- 3801 Applied economics
- 1499 Other Economics
- 1401 Economic Theory