Publications
Publications
- June 2021
- Management Science
Making Marketplaces Safe: Dominant Individual Rationality and Applications to Market Design
By: Benjamin N. Roth and Ran I. Shorrer
Abstract
Often market designers cannot force agents to join a marketplace rather than using pre-existing institutions. We propose a new desideratum for marketplace design that guarantees the safety of participation: Dominant Individual Rationality (DIR). A marketplace is DIR if every pre-existing strategy is weakly dominated by some strategy within the marketplace. We study applications to the design of labor markets and the sharing economy. We also provide a general construction to achieve approximate DIR across a wide range of marketplace designs.
Keywords
Citation
Roth, Benjamin N., and Ran I. Shorrer. "Making Marketplaces Safe: Dominant Individual Rationality and Applications to Market Design." Management Science 67, no. 6 (June 2021).
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