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Monotonicity and Nash Implementation in Matching Markets with Contracts

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  • Haake,Claus-Jochen
  • Klaus,Bettina

    (METEOR)

Abstract

We consider general two-sided matching markets, so-called matching with contracts markets as introduced by Hatfield and Milgrom (2005), and analyze (Maskin) monotonic and Nash implementable solutions. We show that for matching with contracts markets the stable correspondence is monotonic and implementable (Theorems 1 and 3). Furthermore, any solution that is Pareto efficient, individually rational, and monotonic is a supersolution of the stable correspondence (Theore m 2). In other words, the stable correspondence is the minimal solution that is Pareto efficient, individually rational, and implementable.

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Bibliographic Info

Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 028.

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Date of creation: 2005
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Handle: RePEc:dgr:umamet:2005028

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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

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Keywords: microeconomics ;

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Cited by:
  1. Claus-Jochen Haake & Bettina-Elisabeth Klaus, 2008. "Stability and Nash Implementation in Matching Markets with Couples," Harvard Business School Working Papers 09-017, Harvard Business School.
  2. Haake, Claus-Jochen & Klaus, Bettina, 2009. "Monotonicity and Nash implementation in matching markets with contracts," Open Access publications from Maastricht University urn:nbn:nl:ui:27-20022, Maastricht University.
  3. Herings, P. Jean-Jacques & Mauleon, Ana & Vannetelbosch, Vincent, 2006. "Farsightedly Stable Networks," Research Memoranda 041, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
  4. Toyotaka Sakai, 2011. "A note on strategy-proofness from the doctor side in matching with contracts," Review of Economic Design, Springer, vol. 15(4), pages 337-342, December.
  5. Takashi Hayashi & Toyotaka Sakai, 2009. "Nash implementation of competitive equilibria in the job-matching market," International Journal of Game Theory, Springer, vol. 38(4), pages 453-467, November.

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