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Stability of Equilibrium Outcomes under Deferred Acceptance: Acyclicity and Dropping Strategies

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  • Tello Benjamín

    (Dirección General de Investigación Económica, Banco de México, Ciudad de México, México)

Abstract

We consider two-sided many-to-one matching markets where hospitals have responsive preferences. In this context, we study the preference revelation game induced by the student-proposing deferred acceptance mechanism. We show that acyclicity of the hospitals’ preference profile (Romero-Medina and Triossi 2013a. “Acyclicity and Singleton Cores in Matching Markets.” Economics Letters 118 (1):237–9) is a necessary and sufficient condition to ensure that the outcome of every Nash equilibrium in which each hospital plays a dropping strategy is stable.

Suggested Citation

  • Tello Benjamín, 2017. "Stability of Equilibrium Outcomes under Deferred Acceptance: Acyclicity and Dropping Strategies," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 17(2), pages 1-9, June.
    • Handle: RePEc:bpj:bejtec:v:17:y:2017:i:2:p:9:n:10
    DOI: 10.1515/bejte-2016-0131
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    References listed on IDEAS

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    1. Antonio Romero-Medina & Matteo Triossi, 2013. "Games with capacity manipulation: incentives and Nash equilibria," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 701-720, September.
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    4. Jaramillo, Paula & Kayı, Çaǧatay & Klijn, Flip, 2013. "Equilibria under deferred acceptance: Dropping strategies, filled positions, and welfare," Games and Economic Behavior, Elsevier, vol. 82(C), pages 693-701.
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    8. Ma, Jinpeng, 2010. "The singleton core in the college admissions problem and its application to the National Resident Matching Program (NRMP)," Games and Economic Behavior, Elsevier, vol. 69(1), pages 150-164, May.
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    More about this item

    Keywords

    matching; stability; acyclicity; dropping strategies; Nash equilibria;
    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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