It turns out the only Pareto efficient, individually rational (ie everyone never gets something worse than their initial job), and strategyproof mechanism is Top Trading Cycles. In order to make Cato better off, we’d have to violate one of those in some way.
It turns out the only Pareto efficient, individually rational (ie everyone never gets something worse than their initial job), and strategyproof mechanism is Top Trading Cycles. In order to make Cato better off, we’d have to violate one of those in some way.