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Substitutes and stability for matching with contracts

Listed author(s):
  • Hatfield, John William
  • Kojima, Fuhito
Registered author(s):

    We consider the matching with contracts framework of Hatfield and Milgrom [20], and we introduce new concepts of bilateral and unilateral substitutes. We show that the bilateral substitutes condition is a sufficient condition for the existence of a stable allocation in this framework. However, the set of stable allocations does not form a lattice under this condition, and there does not necessarily exist a doctor-optimal stable allocation. Under a slightly stronger condition, unilateral substitutes, the set of stable allocations still does not necessarily form a lattice with respect to doctors' preferences, but there does exist a doctor-optimal stable allocation, and other key results such as incentive compatibility and the rural hospitals theorem are recovered.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0022-0531(10)00018-9
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    Article provided by Elsevier in its journal Journal of Economic Theory.

    Volume (Year): 145 (2010)
    Issue (Month): 5 (September)
    Pages: 1704-1723

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    Handle: RePEc:eee:jetheo:v:145:y:2010:i:5:p:1704-1723
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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