Dynamic Kidney Exchange

We study how barter exchanges should be conducted through a centralized mechanism in a dynamically evolving agent pool with time- and compatibility-based preferences. We find the dynamically optimal two-way and multi-way exchange mechanisms that maximize total discounted exchange surplus. Recently several live-donor kidney exchange programs were established to swap incompatible donors of end-stage kidney disease patients. Since kidney exchange is a special instance of our more general model, dynamically optimal kidney exchange mechanisms are characterized as corollaries. We make policy recommendations using simulations