Learning matters: Reappraising object allocation rules when agents strategically investigate

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Article
Author/s: 
Patrick Harless, Vikram Manjunath
International Economic Review
Publisher: 
Wiley
Year: 
2018
Individuals form preferences through search, interviews, discussion, and investigation. In a stylized object allocation model, we characterize the equilibrium learning strategies induced by different allocation rules and trace their welfare consequences. Our analysis reveals that top trading cycles rules dominate serial priority rules under inequality‚Äźaverse measures of social welfare.
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