Axiomatic characterizations of the constrained probabilistic serial mechanism

Abstract

Afacan (Games and Economic Behavior 110: 71-89, 2018) introduces an object allocation with random priorities problem. He proposes the constrained probabilistic serial (CPS) mechanism. This study, for the first time in the literature, provides axiomatic characterizations of CPS. The first result characterizes it via non-wastefulness, claimwise stability, constrained ordinal fairness, and surplus invariance to truncations. The other axiomatizes CPS via constrained stochastic efficiency, claimwise stability, and constrained ordinal fairness. The independence of the axioms is provided.