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Stable outcomes for contract choice problems

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  • Lahiri, S.

Abstract

In this paper, we consider the problem of choosing a set of multi-party contracts, where each coalition of agents has a non-empty finite set of feasible contracts to choose from. We call such problems, cntract choic problems. We provide conditions under which a contract choice problem has a non-empty set of "stable" outcomes. There are two types of stability concepts we study in this paper:cooperative stability and non- cooperative stability. The cooperative stability concept that we invoke here is the core. We also show, that a simple generalization of the Deferred Acceptance Procedure with men proposing due to Gale and Shapley(1962), yeilds outcomes for a generalized marriage problem, which necessarily belong to the core. The non-cooperative stability concept that we study here is individual stability. The final result of this paper states that every contract choice problem has a non-empty weak bargaining st.
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Suggested Citation

  • Lahiri, S., 2004. "Stable outcomes for contract choice problems," Pure Mathematics and Applications, Department of Mathematics, Corvinus University of Budapest, vol. 15(4), pages 409-418.
    • Handle: RePEc:cmt:pumath:puma2004v015pp0409-0418
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    Cited by:

    1. Lahiri, Somdeb, 2007. "A weak bargaining set for contract choice problems," Research in Economics, Elsevier, vol. 61(4), pages 185-190, December.

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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