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Deferred Acceptance with Compensation Chains

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  • Piotr Dworczak

    (Department of Economics, Northwestern University, Evanston, Illinois 60208)

Abstract

I introduce a class of algorithms called deferred acceptance with compensation chains (DACC). DACC algorithms generalize the Gale–Shapley algorithm by allowing both sides of the market to make offers. The main result is a characterization of the set of stable matchings: a matching is stable if and only if it is the outcome of a DACC algorithm. The proof of convergence of DACC algorithms uses a novel technique based on a construction of a potential function.

Suggested Citation

  • Piotr Dworczak, 2021. "Deferred Acceptance with Compensation Chains," Operations Research, INFORMS, vol. 69(2), pages 456-468, March.
    • Handle: RePEc:inm:oropre:v:69:y:2021:i:2:p:456-468
    DOI: 10.1287/opre.2020.2042
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    References listed on IDEAS

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    Cited by:

    1. Bonifacio, Agustín G. & Juarez, Noelia & Neme, Pablo & Oviedo, Jorge, 2022. "Cycles to compute the full set of many-to-many stable matchings," Mathematical Social Sciences, Elsevier, vol. 117(C), pages 20-29.
    2. Aditya Kuvalekar & Antonio Romero-Medina, 2024. "A fair procedure in a marriage market," Review of Economic Design, Springer;Society for Economic Design, vol. 28(3), pages 533-550, September.
    3. Agustin G. Bonifacio & Nadia Guiñazú & Noelia Juarez & Pablo Neme & Jorge Oviedo, 2024. "The lattice of envy-free many-to-many matchings with contracts," Theory and Decision, Springer, vol. 96(1), pages 113-134, February.

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