Before revision: We propose a market solution to the problem of resource allocation subject to constraints , such as considerations of diversity or geographical distribution . Constraints give rise to pecuniary externalities, which are internalized via prices.
After revision: We propose a market solution to the problem of resource allocation subject to constraints , such as considerations of diversity in school choice, or scheduling in course allocation; and other forms of constraints needed to model, for example, the market for roommates, and combinatorial assignment problems . Constraints give rise to pecuniary externalities, which are internalized via prices.