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Incentives and implementation in marriage markets with externalities

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  • Fonseca-Mairena, María Haydée
  • Triossi, Matteo

Abstract

We study the implementability of stable correspondences in marriage markets with externalities. We prove that, contrary to what happens in markets without externalities, no stable revelation mechanism makes a dominant strategy for the agents on one side of the market to reveal their preferences. However, the stable correspondence is implementable in Nash equilibrium.

Suggested Citation

  • Fonseca-Mairena, María Haydée & Triossi, Matteo, 2019. "Incentives and implementation in marriage markets with externalities," Economics Letters, Elsevier, vol. 185(C).
    • Handle: RePEc:eee:ecolet:v:185:y:2019:i:c:s016517651930343x
    DOI: 10.1016/j.econlet.2019.108688
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    Cited by:

    1. Fonseca-Mairena, María Haydée & Triossi, Matteo, 2022. "Incentives and implementation in allocation problems with externalities," Journal of Mathematical Economics, Elsevier, vol. 99(C).
    2. Antonio Romero-Medina & Matteo Triossi, 2023. "Take-it-or-leave-it contracts in many-to-many matching markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 591-623, February.
    3. Gallego, Jorge & Rivero, Gonzalo & Martínez, Juan, 2021. "Preventing rather than punishing: An early warning model of malfeasance in public procurement," International Journal of Forecasting, Elsevier, vol. 37(1), pages 360-377.
    4. Eduardo Engel & Ronald D. Fischer & Alexander Galetovic, 2020. "When and How to Use Public-Private Partnerships in Infrastructure: Lessons from the International Experience," NBER Chapters, in: Economic Analysis and Infrastructure Investment, pages 333-364, National Bureau of Economic Research, Inc.
    5. Piazza, Adriana & Torres-Martínez, Juan Pablo, 2024. "Coalitional stability in matching problems with externalities and random preferences," Games and Economic Behavior, Elsevier, vol. 143(C), pages 321-339.
    6. Cesar Martinelli, 2022. "Accountability and Grand Corruption," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 645-679, November.
    7. Fonseca-Mairena, María Haydée & Triossi, Matteo, 2023. "Coalition formation problems with externalities," Economics Letters, Elsevier, vol. 226(C).

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    More about this item

    Keywords

    Marriage market; Externalities; Incentives; Implementation;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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