Strategyproof Allocation Mechanisms with Endowments and M-convex Distributional Constraints

Takamasa Suzuki, Akihisa Tamura, Kentaro Yahiro, Makoto Yokoo, Yuzhe Zhang

Abstract: Highlights•Many real-life distributional constraints belong to M-convex class.•Under M-convex constraints, no mechanism is fair and nonwasteful.•New Pareto efficient mechanism is based on Top Trading Cycles mechanism.•New fair mechanism is based on Deferred Acceptance mechanism.•Both mechanisms outperform baseline mechanisms theoretically and empirically.