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Deferred acceptance algorithm with retrade

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  • Matsui, Akihiko
  • Murakami, Megumi

Abstract

We study deferred acceptance algorithm (DA) with retrade by formulating a two-stage model where DA is played in the first stage, and a decentralized market opens in the second. Both non-monetary and monetary retrades are considered. Perfect market equilibrium (PME) is defined: market equilibrium prevails in the second stage both on and off the path, and Nash equilibrium is played in the first stage game induced by the second-stage markets.

Suggested Citation

  • Matsui, Akihiko & Murakami, Megumi, 2022. "Deferred acceptance algorithm with retrade," Mathematical Social Sciences, Elsevier, vol. 120(C), pages 50-65.
    • Handle: RePEc:eee:matsoc:v:120:y:2022:i:c:p:50-65
    DOI: 10.1016/j.mathsocsci.2022.08.004
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