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Non-vetoed matching with status quo

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  • Afacan, Mustafa Oǧuz

Abstract

We consider a matching market where there is an initial matching a priori. Both sides of the market can veto the new matching whenever they would rather keep their initial assignment. We propose a stability notion, called “conditional stability”. Our first mechanism—“Non-Vetoed Deferred Acceptance” (NDA)—is non-vetoed, conditionally stable, and strategy-proof. These three properties are incompatible with (two-sided) conditional constrained efficiency; hence NDA is not conditionally constrained efficient. However, no mechanism that is non-vetoed, conditionally stable, and strategy-proof improves on NDA. Lastly, we propose a non-vetoed, conditionally stable, and conditionally constrained efficient mechanism.

Suggested Citation

  • Afacan, Mustafa Oǧuz, 2024. "Non-vetoed matching with status quo," Journal of Mathematical Economics, Elsevier, vol. 111(C).
  • Handle: RePEc:eee:mateco:v:111:y:2024:i:c:s0304406824000272
    DOI: 10.1016/j.jmateco.2024.102965
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