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Equivalent choice functions and stable mechanisms

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  • Schlegel, Jan Christoph

Abstract

We study conditions for the existence of stable and (group)-strategy-proof mechanisms in a many-to-one matching model with contracts if students' preferences are monotone in contract terms. We show that “equivalence”, properly defined, to a choice profile under which contracts are substitutes and the law of aggregate demand holds is a necessary and sufficient condition for the existence of a stable and (group)-strategy-proof mechanism.

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  • Schlegel, Jan Christoph, 2020. "Equivalent choice functions and stable mechanisms," Games and Economic Behavior, Elsevier, vol. 123(C), pages 41-53.
    • Handle: RePEc:eee:gamebe:v:123:y:2020:i:c:p:41-53
    DOI: 10.1016/j.geb.2020.06.005
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    1. Kasuya, Yusuke, 2021. "Group incentive compatibility and welfare for matching with contracts," Economics Letters, Elsevier, vol. 202(C).

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    More about this item

    Keywords

    Matching with contracts; College admission; Substitutes; Observable substitutes; Strategy-proofness; Deferred acceptance;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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