Shapley and Scarf housing markets with consumption externalities

We introduce externalities into the classical model by Shapley and Scarf; that is, agents care about others and their preferences are defined over allocations rather than over single indivisible goods. After collecting some results about the nonexistence of several cooperative solutions, we focus on...

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Bibliographic Details
Published in:Journal of public economic theory 2020-09, Vol.22 (5), p.1481-1514
Main Authors: Graziano, Maria Gabriella, Meo, Claudia, Yannelis, Nicholas C.
Format: Article
Language:English
Subjects:
Economic theory
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Summary:We introduce externalities into the classical model by Shapley and Scarf; that is, agents care about others and their preferences are defined over allocations rather than over single indivisible goods. After collecting some results about the nonexistence of several cooperative solutions, we focus on stable allocations and propose domains of preferences that can guarantee that they both exist and form a stable set à la von Neumann and Morgenstern.
ISSN:1097-3923
1467-9779
DOI:10.1111/jpet.12470