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Stability vs. no justified envy

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  • Romm, Assaf
  • Roth, Alvin E.
  • Shorrer, Ran I.

Abstract

Stability and “no justified envy” are used almost synonymously in the matching theory literature. However, they are conceptually different and have logically separate properties. We generalize the definition of justified envy to environments with arbitrary school preferences, feasibility constraints, and contracts, and show that stable allocations may admit justified envy. When choice functions are substitutable, the outcome of the deferred acceptance algorithm is both stable and admits no justified envy.

Suggested Citation

  • Romm, Assaf & Roth, Alvin E. & Shorrer, Ran I., 2024. "Stability vs. no justified envy," Games and Economic Behavior, Elsevier, vol. 148(C), pages 357-366.
    • Handle: RePEc:eee:gamebe:v:148:y:2024:i:c:p:357-366
    DOI: 10.1016/j.geb.2024.10.002
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    References listed on IDEAS

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