Cost of transformation: a measure on matchings
Publikation: Working paper › Forskning
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Cost of transformation : a measure on matchings . / Can, Burak; Pourpouneh, Mohsen; Storcken, Ton.
Department of Food and Resource Economics, University of Copenhagen, 2020.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Cost of transformation
T2 - a measure on matchings
AU - Can, Burak
AU - Pourpouneh, Mohsen
AU - Storcken, Ton
PY - 2020
Y1 - 2020
N2 - This paper constructs a normative framework to quantify the difference (distance) between outcomes of market mechanisms in matching markets. We investigate the "cost of transformation" from one market mechanism to another, based on the differences in the outputs of these mechanisms, i.e., the matchings. Several conditions are introduced to ensure that this cost reflects the welfare effect of the transformation on individuals. We find a class of measures called scaled Borda measures, which is characterized by these conditions. Several possible applications of these measures in different markets are also discussed, such as measuring how unstable, how unfair, or how inefficient a mechanism (or a matching) is.
AB - This paper constructs a normative framework to quantify the difference (distance) between outcomes of market mechanisms in matching markets. We investigate the "cost of transformation" from one market mechanism to another, based on the differences in the outputs of these mechanisms, i.e., the matchings. Several conditions are introduced to ensure that this cost reflects the welfare effect of the transformation on individuals. We find a class of measures called scaled Borda measures, which is characterized by these conditions. Several possible applications of these measures in different markets are also discussed, such as measuring how unstable, how unfair, or how inefficient a mechanism (or a matching) is.
M3 - Working paper
T3 - IFRO Working Paper
BT - Cost of transformation
PB - Department of Food and Resource Economics, University of Copenhagen
ER -
ID: 247870897