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Stability and Nash Implementation in Matching Markets with Couples

Author

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  • Claus-Jochen Haake

    (Institute of Mathematical Economics, Bielefeld University)

  • Bettina-Elisabeth Klaus

    (Harvard Business School, Negotiation, Organizations & Markets Unit)

Abstract

We consider two-sided matching markets with couples. First, we extend a result by Klaus and Klijn (2005, Theorem 3.3) and show that for any weakly responsive couples market there always exists a "double stable" matching, i.e., a matching that is stable for the couples market and for any associated singles market. Second, we show that for weakly responsive couples markets the associated stable correspondence is (Maskin) monotonic and Nash implementable. In contrast, the correspondence that assigns all double stable matchings is neither monotonic nor Nash implementable.

Suggested Citation

  • 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.
    • Handle: RePEc:hbs:wpaper:09-017
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    References listed on IDEAS

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    1. Klaus, Bettina & Klijn, Flip, 2005. "Stable matchings and preferences of couples," Journal of Economic Theory, Elsevier, vol. 121(1), pages 75-106, March.
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    Cited by:

    1. Alfredo Salgado-Torres, 2012. "A simple decentralized matching mechanism in markets with couples," Economics Bulletin, AccessEcon, vol. 32(3), pages 2044-2055.
    2. Vilmos Komornik & Christelle Viauroux, 2012. "Conditional Stable Matchings," UMBC Economics Department Working Papers 12-03, UMBC Department of Economics.

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    More about this item

    Keywords

    Matching with Couples; (Maskin) Monotonicity; Nash Implementation; Stability; Weakly Responsive Preferences;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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