Consider the following housing market problem, where each agent (ai) is is the existing tenant of
house hi
, where i in {1, 2, ..., 16}, and preferences are given by:
a1 a2 a3 a4 a5 a6 a7 a8 a9 a10 a11 a12 a13 a14 a15 a16
h15 h3 h1 h2 h9 h6 h7 h6 h11 h7 h2 h4 h6 h8 h1 h5
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. h4 h3
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. h12
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. h3 h4 h14 h13
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. h12 h16
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h10
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1. Execute the TTC algorithm.
2. Is it individually rational? (verify or falsify it).
3. Is it Pareto efficient? (verify or falsify it).