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A simple decentralized matching mechanism in markets with couples

Author

Listed:
  • Alfredo Salgado-Torres

    () (Universidad Carlos III de Madrid)

Abstract

We analyze a simple decentralized matching mechanism in market with couples called One Application Mechanism. Under this mechanism any stable matching of the market can be attained in Subgame Perfect equilibrium (SPE). In contrast with previous results, we find that the mechanism may attain unstable matchings in SPE. We show that only one special kind of instability is admissible in equilibrium and we argue that this exclusively comes from coordination failures between members of couples. Our main result shows that the One Application Mechanism implements in SPE the set of pairwise stable matchings in markets with couples.

Suggested Citation

  • Alfredo Salgado-Torres, 2012. "A simple decentralized matching mechanism in markets with couples," Economics Bulletin, AccessEcon, vol. 32(3), pages 2044-2055.
  • Handle: RePEc:ebl:ecbull:eb-12-00128
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P198.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Markets with couples; Decentralized matching; Stable matchings; Implementation;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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