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Competition and Resource Sensitivity in Marriage and Roommate Markets

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  • Bettina Klaus

Abstract

We consider one-to-one matching markets in which agents can either be matched as pairs or remain single. In these so-called roommate markets agents are consumers and resources at the same time. We investigate two new properties that capture the effect newcomers have on incumbent agents. Competition sensitivity focuses on newcomers as additional consumers and requires that some incumbents will suffer if competition is caused by newcomers. Resource sensitivity focuses on newcomers as additional resources and requires that this is beneficial for some incumbents. For solvable roommate markets, we provide the first characterizations of the core using either competition or resource sensitivity. On the domain of all roommate markets, we obtain two associated impossibility results.

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Bibliographic Info

Paper provided by Université de Lausanne, Faculté des HEC, DEEP in its series Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) with number 10.03.

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Length: 22 pages
Date of creation: Apr 2010
Date of revision:
Publication status: Published in Games and Economic Behavior, 72(1), May 2011, pp. 172-186
Handle: RePEc:lau:crdeep:10.03

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Postal: Université de Lausanne, Faculté des HEC, DEEP, Internef, CH-1015 Lausanne
Phone: ++41 21 692.33.64
Fax: ++41 21 692.33.05
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Web page: http://www.hec.unil.ch/deep/publications/cahiers/series
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Related research

Keywords: core; matching; competition sensitivity; resource sensitivity; roommate market;

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  1. Burak Can & Bettina Klaus, 2013. "Consistency and population sensitivity properties in marriage and roommate markets," Social Choice and Welfare, Springer, vol. 41(4), pages 835-862, October.
  2. Maskin, Eric, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Wiley Blackwell, vol. 66(1), pages 23-38, January.
  3. Sonmez, T., 1995. "Implementation in Generalized Matching Problems," Papers 95-03, Michigan - Center for Research on Economic & Social Theory.
  4. Manabu Toda, 2006. "Monotonicity and Consistency in Matching Markets," International Journal of Game Theory, Springer, vol. 34(1), pages 13-31, April.
  5. William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
  6. Barbera, S. & Bossert, W. & Pattanaik, P.K., 2001. "Ranking Sets of Objects," Cahiers de recherche 2001-02, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  7. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
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Cited by:
  1. Thayer Morrill, 2013. "An alternative characterization of the deferred acceptance algorithm," International Journal of Game Theory, Springer, vol. 42(1), pages 19-28, February.
  2. Burak Can & Bettina Klaus, 2013. "Consistency and population sensitivity properties in marriage and roommate markets," Social Choice and Welfare, Springer, vol. 41(4), pages 835-862, October.

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