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Games of capacity allocation in many-to-one matching with an aftermarket

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  • Ayşe Mumcu

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  • Ismail Saglam

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Abstract

In this paper, we study many-to-one matching (hospital-intern markets) with an aftermarket. We analyze the Nash equilibria of capacity allocation games, in which preferences of hospitals and interns are common knowledge and every hospital determines a quota for the regular market given its total capacity for the two matching periods. Under the intern-optimal stable matching system, we show that a pure-strategy Nash equilibrium may not exist. Common preferences for hospitals ensure the existence of equilibrium in weakly dominant strategies whereas unlike in games of capacity manipulation strong monotonicity of population is not a sufficient restriction on preferences to avoid the nonexistence problem. Besides, in games of capacity allocation, it is not true either that every hospital weakly prefers a mixed-strategy Nash equilibrium to any larger regular market quota profiles.
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Suggested Citation

  • Ayşe Mumcu & Ismail Saglam, 2009. "Games of capacity allocation in many-to-one matching with an aftermarket," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(3), pages 383-403, September.
  • Handle: RePEc:spr:sochwe:v:33:y:2009:i:3:p:383-403 DOI: 10.1007/s00355-008-0364-2
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Antonio Romero-Medina & Matteo Triossi, 2013. "Games with capacity manipulation: incentives and Nash equilibria," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, pages 701-720.
    2. Assaf Romm, 2014. "Implications of capacity reduction and entry in many-to-one stable matching," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(4), pages 851-875, December.
    3. Azevedo, Eduardo M., 2014. "Imperfect competition in two-sided matching markets," Games and Economic Behavior, Elsevier, vol. 83(C), pages 207-223.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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