An Impossibility Result for Housing Markets with Fractional Endowments

Abstract

The housing market setting constitutes a fundamental model of exchange economies of goods. Most of the work concerning housing markets does not cater for randomized assignments or allocation of time-shares. House allocation with fractional endowments of houses was considered by Athanassoglou and Sethuraman (2011) who posed the open problem whether individual rationality, weak strategyproofness, and efficiency are compatible for the setting. We show that the three axioms are incompatible.