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Contracts are not salaries in the hidden-substitutes domain

Author

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  • Hassidim, Avinatan
  • Romm, Assaf
  • Shorrer, Ran I.

Abstract

We show that many-to-one matching markets with contracts where colleges’ preferences satisfy the hidden substitutes condition of Hatfield and Kominers (2015) may not be embedded, in the sense of Echenique (2012) into a Kelso and Crawford(1982) matching-with-salaries market. Our proof relies on a configurations of preferences that is observed in many college admissions markets.

Suggested Citation

  • Hassidim, Avinatan & Romm, Assaf & Shorrer, Ran I., 2019. "Contracts are not salaries in the hidden-substitutes domain," Economics Letters, Elsevier, vol. 181(C), pages 40-42.
    • Handle: RePEc:eee:ecolet:v:181:y:2019:i:c:p:40-42
    DOI: 10.1016/j.econlet.2019.04.025
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    References listed on IDEAS

    as
    1. Hatfield, John William & Kojima, Fuhito, 2010. "Substitutes and stability for matching with contracts," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1704-1723, September.
    2. Kominers, Scott Duke, 2012. "On the correspondence of contracts to salaries in (many-to-many) matching," Games and Economic Behavior, Elsevier, vol. 75(2), pages 984-989.
    3. Ran I. Shorrer & Sandor Sovago, 2017. "Obvious Mistakes in a Strategically Simple College Admissions Environment," Tinbergen Institute Discussion Papers 17-107/V, Tinbergen Institute.
    4. Schlegel, Jan Christoph, 2015. "Contracts versus salaries in matching: A general result," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 552-573.
    5. Federico Echenique, 2012. "Contracts versus Salaries in Matching," American Economic Review, American Economic Association, vol. 102(1), pages 594-601, February.
    6. Kadam, Sangram Vilasrao, 2017. "Unilateral substitutability implies substitutable completability in many-to-one matching with contracts," Games and Economic Behavior, Elsevier, vol. 102(C), pages 56-68.
    7. Tayfun Sönmez & Tobias B. Switzer, 2013. "Matching With (Branch‐of‐Choice) Contracts at the United States Military Academy," Econometrica, Econometric Society, vol. 81(2), pages 451-488, March.
    8. Avinatan Hassidim & Assaf Romm & Ran I. Shorrer, 2016. ""Strategic" Behavior in a Strategy-Proof Environment," Working Paper 413411, Harvard University OpenScholar.
    9. John William Hatfield & Paul R. Milgrom, 2005. "Matching with Contracts," American Economic Review, American Economic Association, vol. 95(4), pages 913-935, September.
    10. Zhang, Jun, 2016. "On sufficient conditions for the existence of stable matchings with contracts," Economics Letters, Elsevier, vol. 145(C), pages 230-234.
    11. Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
    12. Orhan Ayg?n & Tayfun S?nmez, 2013. "Matching with Contracts: Comment," American Economic Review, American Economic Association, vol. 103(5), pages 2050-2051, August.
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