Trading Cycles for School Choice

Abstract

In this note we study the allocation and exchange of discrete resources in environ- ments in which monetary transfers are not allowed. We allow each discrete resource to be represented by several copies, extend onto this environment the trading cycles mechanisms of Pycia and Ünver [2009], and show that the extended mechanisms are Pareto efficient and strategy-proof. In particular, we construct the counterpart of Pápai [2000] hiererachical exchange mechanisms for environments with copies.