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On stable and strategy-proof rules in matching markets with contracts

Listed author(s):
  • Hirata, Daisuke
  • Kasuya, Yusuke

This paper studies stable and (one-sided) strategy-proof rules in many-to-one matching markets with contracts. Not assuming any kind of substitutes condition or the law of aggregate demand, we obtain the following results. First, the number of stable and strategy-proof rules is at most one. Second, the doctor-optimal stable rule, whenever it exists, is the unique candidate for a stable and strategy-proof rule. Third, a stable and strategy-proof rule, whenever it exists, is second-best optimal for doctor welfare, in that no individually rational and strategy-proof rule can dominate it. This last result is further generalized to non-wasteful and strategy-proof rules. Due to the weak assumptions, our analysis covers a broad range of markets, including cases where a (unique) stable and strategy-proof rule is not equal to the one induced by the cumulative offer process or the deferred acceptance algorithm.

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File URL: http://www.sciencedirect.com/science/article/pii/S0022053116301144
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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 168 (2017)
Issue (Month): C ()
Pages: 27-43

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Handle: RePEc:eee:jetheo:v:168:y:2017:i:c:p:27-43
DOI: 10.1016/j.jet.2016.12.005
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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