Group incentive compatibility for matching with contracts
AbstractHatfield and Milgrom [Hatfield, John William, Milgrom, Paul R., 2005. Matching with contracts. Amer. Econ. Rev. 95, 913-935] present a unified model of matching with contracts, which includes the standard two-sided matching and some package auction models as special cases. They show that the doctor-optimal stable mechanism is strategy-proof for doctors if hospitals' preferences satisfy substitutes and the law of aggregate demand. We show that the doctor-optimal stable mechanism is group strategy-proof for doctors under these same conditions. That is, no group of doctors can make each of its members strictly better off by jointly misreporting their preferences. We derive as a corollary of this result that no individually rational allocation is preferred by all the doctors to the doctor-optimal stable allocation.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 67 (2009)
Issue (Month): 2 (November)
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Web page: http://www.elsevier.com/locate/inca/622836
Matching Matching with contracts Substitutes Law of aggregate demand Stability Strategy-proofness Group strategy-proofness;
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