A characterization of strategy-proof probabilistic assignment rules

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Hauptverfasser: Donthu, Sai Praneeth, Roy, Souvik, Sadhukhan, Soumyarup, Sreedurga, Gogulapati
Format: Preprint
Veröffentlicht: 2025
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author Donthu, Sai Praneeth
Roy, Souvik
Sadhukhan, Soumyarup
Sreedurga, Gogulapati
author_facet Donthu, Sai Praneeth
Roy, Souvik
Sadhukhan, Soumyarup
Sreedurga, Gogulapati
contents We study the classical probabilistic assignment problem, where finitely many indivisible objects are to be probabilistically or proportionally assigned among an equal number of agents. Each agent has an initial deterministic endowment and a strict preference over the objects. While the deterministic version of this problem is well understood, most notably through the characterization of the Top Trading Cycles (TTC) rule by Ma (1994), much less is known in the probabilistic setting. Motivated by practical considerations, we introduce a weakened incentive requirement, namely SD-top-strategy-proofness, which precludes only those manipulations that increase the probability of an agent's top-ranked object. Our first main result shows that, on any free pair at the top (FPT) domain (Sen, 2011), the TTC rule is the unique probabilistic assignment rule satisfying SD-Pareto efficiency, SD-individual rationality, and SD-top-strategy-proofness. We further show that this characterization remains valid when Pareto efficiency is replaced by the weaker notion of SD-pair efficiency, provided the domain satisfies the slightly stronger free triple at the top (FTT) condition (Sen, 2011). Finally, we extend these results to the ex post notions of efficiency and individual rationality. Together, our findings generalize the classical deterministic results of Ma (1994) and Ekici (2024) along three dimensions: extending them from deterministic to probabilistic settings, from full strategy-proofness to top-strategy-proofness, and from the unrestricted domain to the more general FPT and FTT domains.
format Preprint
id arxiv_https___arxiv_org_abs_2511_04142
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A characterization of strategy-proof probabilistic assignment rules
Donthu, Sai Praneeth
Roy, Souvik
Sadhukhan, Soumyarup
Sreedurga, Gogulapati
Theoretical Economics
91B14, 91B03, 91B68
We study the classical probabilistic assignment problem, where finitely many indivisible objects are to be probabilistically or proportionally assigned among an equal number of agents. Each agent has an initial deterministic endowment and a strict preference over the objects. While the deterministic version of this problem is well understood, most notably through the characterization of the Top Trading Cycles (TTC) rule by Ma (1994), much less is known in the probabilistic setting. Motivated by practical considerations, we introduce a weakened incentive requirement, namely SD-top-strategy-proofness, which precludes only those manipulations that increase the probability of an agent's top-ranked object. Our first main result shows that, on any free pair at the top (FPT) domain (Sen, 2011), the TTC rule is the unique probabilistic assignment rule satisfying SD-Pareto efficiency, SD-individual rationality, and SD-top-strategy-proofness. We further show that this characterization remains valid when Pareto efficiency is replaced by the weaker notion of SD-pair efficiency, provided the domain satisfies the slightly stronger free triple at the top (FTT) condition (Sen, 2011). Finally, we extend these results to the ex post notions of efficiency and individual rationality. Together, our findings generalize the classical deterministic results of Ma (1994) and Ekici (2024) along three dimensions: extending them from deterministic to probabilistic settings, from full strategy-proofness to top-strategy-proofness, and from the unrestricted domain to the more general FPT and FTT domains.
title A characterization of strategy-proof probabilistic assignment rules
topic Theoretical Economics
91B14, 91B03, 91B68
url https://arxiv.org/abs/2511.04142