On the integration of Shapley–Scarf markets

Rajnish Kumar; Kriti Manocha; Josue Ortega

doi:10.1016/j.jmateco.2022.102637

On the integration of Shapley–Scarf markets

Rajnish Kumar, Kriti Manocha, Josue Ortega^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

We study the welfare consequences of merging Shapley–Scarf markets. Market integration can lead to large welfare losses and make the vast majority of agents worse-off, but is on average welfare-enhancing and makes all agents better off ex-ante. The number of agents harmed by integration is a minority when all markets are small or agents’ preferences are highly correlated.

Original language	English
Article number	102637
Journal	Journal of Mathematical Economics
DOIs	https://doi.org/10.1016/j.jmateco.2022.102637
Publication status	Published - 10 May 2022

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On the integration of Shapley–Scarf markets
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title = "On the integration of Shapley–Scarf markets",

abstract = "We study the welfare consequences of merging Shapley–Scarf markets. Market integration can lead to large welfare losses and make the vast majority of agents worse-off, but is on average welfare-enhancing and makes all agents better off ex-ante. The number of agents harmed by integration is a minority when all markets are small or agents{\textquoteright} preferences are highly correlated.",

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AB - We study the welfare consequences of merging Shapley–Scarf markets. Market integration can lead to large welfare losses and make the vast majority of agents worse-off, but is on average welfare-enhancing and makes all agents better off ex-ante. The number of agents harmed by integration is a minority when all markets are small or agents’ preferences are highly correlated.

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On the integration of Shapley–Scarf markets

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