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Matching with Contracts: Comment

Listed author(s):
  • Orhan Ayg?n
  • Tayfun S?nmez

The matching with contracts model (Hatfield and Milgrom 2005) is widely considered to be one of the most important advances of the last two decades in matching theory. One of their main messages is that the set of stable allocations is non-empty under a substitutes condition. We show that an additional irrelevance of rejected contracts (IRC) condition is implicitly assumed throughout their analysis, and in the absence of IRC several of their results, including the guaranteed existence of a stable allocation, fail to hold.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.5.2050
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File URL: http://www.aeaweb.org/aer/ds/august2013/20130006_ds.zip
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 103 (2013)
Issue (Month): 5 (August)
Pages: 2050-2051

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Handle: RePEc:aea:aecrev:v:103:y:2013:i:5:p:2050-51
Note: DOI: 10.1257/aer.103.5.2050
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  1. Tayfun Sönmez & Tobias B. Switzer, 2013. "Matching With (Branch‐of‐Choice) Contracts at the United States Military Academy," Econometrica, Econometric Society, vol. 81(2), pages 451-488, 03.
  2. Tayfun Sönmez, 2013. "Bidding for Army Career Specialties: Improving the ROTC Branching Mechanism," Journal of Political Economy, University of Chicago Press, vol. 121(1), pages 186-219.
  3. Alkan, Ahmet & Gale, David, 2003. "Stable schedule matching under revealed preference," Journal of Economic Theory, Elsevier, vol. 112(2), pages 289-306, October.
  4. Orhan Aygün & Tayfun Sönmez, 2012. "Matching with Contracts: The Critical Role of Irrelevance of Rejected Contracts," Boston College Working Papers in Economics 804, Boston College Department of Economics.
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