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Matching with partners and projects

Author

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  • Nicolò, Antonio
  • Sen, Arunava
  • Yadav, Sonal

Abstract

We propose a model where agents are matched in pairs in order to undertake a project. Agents have preferences over both the partner and the project they are assigned to. These preferences over partners and projects are separable and dichotomous. Each agent partitions the set of partners into friends and outsiders, and the set of projects into good and bad ones. Friendship is mutual and transitive. In addition, preferences over projects among friends are correlated (homophily). We define a suitable notion of the weak core and propose an algorithm, the minimum demand priority algorithm (MDPA) that generates an assignment in the weak core. In general, the strong core does not exist but the MDPA assignment satisfies a limited version of the strong core property when only friends can be members of the blocking coalition. The MDPA is also strategy-proof. Finally we show that our assumptions on preferences are indispensable. We show that the weak core may fail to exist if any of the assumptions of homophily, separability and dichotomous preferences are relaxed.

Suggested Citation

  • Nicolò, Antonio & Sen, Arunava & Yadav, Sonal, 2019. "Matching with partners and projects," Journal of Economic Theory, Elsevier, vol. 184(C).
    • Handle: RePEc:eee:jetheo:v:184:y:2019:i:c:s002205311830214x
    DOI: 10.1016/j.jet.2019.104942
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    References listed on IDEAS

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    Cited by:

    1. Yoshio Sano & Ping Zhan, 2021. "Extended Random Assignment Mechanisms on a Family of Good Sets," SN Operations Research Forum, Springer, vol. 2(4), pages 1-30, December.
    2. Combe, Julien, 2022. "Matching with ownership," Journal of Mathematical Economics, Elsevier, vol. 98(C).
    3. Nicolò, Antonio & Salmaso, Pietro & Sen, Arunava & Yadav, Sonal, 2023. "Stable sharing," Games and Economic Behavior, Elsevier, vol. 141(C), pages 337-363.

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    More about this item

    Keywords

    Matching; Stability; Strategy-proofness; Two-sided matching; One-sided matching;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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