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Games with capacity manipulation: incentives and Nash equilibria

Listed author(s):
  • Antonio Romero-Medina

    ()

  • Matteo Triossi

    ()

Studying the interactions between preference and capacity manipulation in matching markets, we prove that acyclicity is a necessary and sufficient condition that guarantees the stability of a Nash equilibrium and the strategy-proofness of truthful capacity revelation under the hospital-optimal and intern-optimal stable rules. We then introduce generalized games of manipulation in which hospitals move first and state their capacities, and interns are subsequently assigned to hospitals using a sequential mechanism. In this setting, we first consider stable revelation mechanisms and introduce conditions guaranteeing the stability of the outcome. Next, we prove that every stable non-revelation mechanism leads to unstable allocations, unless restrictions on the preferences of the agents are introduced. Copyright Springer-Verlag Berlin Heidelberg 2013

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File URL: http://hdl.handle.net/10.1007/s00355-012-0703-1
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Article provided by Springer & The Society for Social Choice and Welfare in its journal Social Choice and Welfare.

Volume (Year): 41 (2013)
Issue (Month): 3 (September)
Pages: 701-720

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Handle: RePEc:spr:sochwe:v:41:y:2013:i:3:p:701-720
DOI: 10.1007/s00355-012-0703-1
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