Utilitarian Object Reallocation

šŸ“ƒ Submitted version

This paper studies an object allocation problem, which involves assigning objects to agents while taking into account agents’ endowments, object capacities and agents’ preferences. We focus on the Pareto efficient and individually rational allocations. The goal is to study the Pareto efficient and individually rational allocations that maximize the number of individuals improving upon their initial endowments. We present the Reallocating Cycles Algorithm for addressing this problem. Next, we discuss several extensions where our algorithm can be used with a minor modification. Extensions include an affirmative action setting where priority is given to the most disadvantaged individuals.