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Fractional solutions for capacitated NTU-games, with applications to stable matchings

Author

Listed:
  • Peter Biro

    (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences)

  • Tamas Fleiner

    (Department of Computer Science and Information Theory Budapest University of Technology and Economics)

Abstract

In this paper we investigate some new applications of Scarf's Lemma. First, we introduce the notion of fractional core for NTU-games, which is always nonempty by the Lemma. Stable allocation is a general solution concept for games where both the players and their possible cooperations can have capacities. We show that the problem of finding a stable allocation, given a finitely generated NTU-game with capacities, is always solvable by a variant of Scarf's Lemma. Then we describe the interpretation of these results for matching games. Finally we consider an even more general setting where players' contributions in a joint activity may be different. We show that a stable allocation can be found by the Scarf algorithm in this case as well, and we demonstrate the usage of this method for the hospitals resident problem with couples. This problem is relevant in many practical applications, such as NRMP (National Resident Matching Program).

Suggested Citation

  • Peter Biro & Tamas Fleiner, 2012. "Fractional solutions for capacitated NTU-games, with applications to stable matchings," CERS-IE WORKING PAPERS 1234, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:1234
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    References listed on IDEAS

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    1. Péter Biró & Flip Klijn, 2013. "Matching With Couples: A Multidisciplinary Survey," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-18.
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    5. Parag A. Pathak & Alvin E. Roth, 2013. "Matching with Couples: Stability and Incentives in Large Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(4), pages 1585-1632.
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    8. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
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    11. Peter Biro & Tamas Fleiner & Rob Irving, 2013. "Matching Couples with Scarf's Algorithm," CERS-IE WORKING PAPERS 1330, Institute of Economics, Centre for Economic and Regional Studies.
    12. Elliott Peranson & Alvin E. Roth, 1999. "The Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design," American Economic Review, American Economic Association, vol. 89(4), pages 748-780, September.
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    Cited by:

    1. Peter Biro & Tamas Fleiner & Rob Irving, 2013. "Matching Couples with Scarf's Algorithm," CERS-IE WORKING PAPERS 1330, Institute of Economics, Centre for Economic and Regional Studies.
    2. Ahmet Alkan & Alparslan Tuncay, 2014. "Pairing Games and Markets," Working Papers 2014.48, Fondazione Eni Enrico Mattei.
    3. Thanh Nguyen & Rakesh Vohra, 2014. "Near Feasible Stable Matchings with Complementarities," PIER Working Paper Archive 14-028, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    4. Manjunath, Vikram, 2016. "Fractional matching markets," Games and Economic Behavior, Elsevier, vol. 100(C), pages 321-336.

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    More about this item

    Keywords

    Scarf lemma; core; stable matching; stable allocation; hospitals residents problem; couples;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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