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Contract design and stability in many-to-many matching

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  • Hatfield, John William
  • Kominers, Scott Duke

Abstract

We develop a model of many-to-many matching with contracts that subsumes as special cases many-to-many matching markets and buyer–seller markets with heterogeneous and indivisible goods. In our setting, substitutable preferences are sufficient to guarantee the existence of stable outcomes; moreover, in contrast to results for the setting of many-to-one matching with contracts, if any agent's preferences are not substitutable, then the existence of a stable outcome can not be guaranteed.

Suggested Citation

  • Hatfield, John William & Kominers, Scott Duke, 2017. "Contract design and stability in many-to-many matching," Games and Economic Behavior, Elsevier, vol. 101(C), pages 78-97.
    • Handle: RePEc:eee:gamebe:v:101:y:2017:i:c:p:78-97
    DOI: 10.1016/j.geb.2016.01.002
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    More about this item

    Keywords

    Many-to-many matching; Stability; Substitutes; Contract design;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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