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Semi-stability in roommate problems

Author

Listed:
  • Herings, P. Jean-Jacques

    (Department of Econometrics and Operations Research, Tilburg University)

  • Zhou, Yu

    (Department of Economics, Graduate School of Economics, Nagoya University)

Abstract

We study the roommate problem allowing for preferences with indifferences and agents remaining single. A stable outcome need not exist. We introduce semi-stability, a novel notion that guarantees existence and restores stability through minimal policy or group interventions. We build an equilibrium foundation for semi-stability by showing its equivalence to a newly proposed choice-based equilibrium concept. We show that undominated semi-stable outcomes are Pareto optimal and under strict preferences, every semi-stable outcome is Pareto optimal. Nevertheless, standard structural properties, such as the rural hospital theorem and the lattice properties, fail for semi-stable outcomes. We also discuss possible applications.

Suggested Citation

  • Herings, P. Jean-Jacques & Zhou, Yu, 0. "Semi-stability in roommate problems," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:6562
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    References listed on IDEAS

    as
    1. Herings, P. Jean-Jacques, 2024. "Expectational equilibria in many-to-one matching models with contracts," Journal of Economic Theory, Elsevier, vol. 216(C).
    2. John William Hatfield & Scott Duke Kominers & Alexandru Nichifor & Michael Ostrovsky & Alexander Westkamp, 2013. "Stability and Competitive Equilibrium in Trading Networks," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 966-1005.
    3. Roth, Alvin E. & Sonmez, Tayfun & Utku Unver, M., 2005. "Pairwise kidney exchange," Journal of Economic Theory, Elsevier, vol. 125(2), pages 151-188, December.
    4. Atay, Ata & Mauleon, Ana & Vannetelbosch, Vincent, 2021. "A bargaining set for roommate problems," Journal of Mathematical Economics, Elsevier, vol. 94(C).
    5. Chung, Kim-Sau, 2000. "On the Existence of Stable Roommate Matchings," Games and Economic Behavior, Elsevier, vol. 33(2), pages 206-230, November.
    6. Klijn, Flip & Masso, Jordi, 2003. "Weak stability and a bargaining set for the marriage model," Games and Economic Behavior, Elsevier, vol. 42(1), pages 91-100, January.
    7. Herings, P. Jean-Jacques, 2018. "Equilibrium and matching under price controls," Journal of Economic Theory, Elsevier, vol. 177(C), pages 222-244.
    8. Dur, Umut & Gitmez, A. Arda & Yılmaz, Özgür, 2019. "School choice under partial fairness," Theoretical Economics, Econometric Society, vol. 14(4), November.
    9. Thomas Demuynck & P. Jean‐Jacques Herings & Riccardo D. Saulle & Christian Seel, 2019. "The Myopic Stable Set for Social Environments," Econometrica, Econometric Society, vol. 87(1), pages 111-138, January.
    10. Ozan Candogan & Markos Epitropou & Rakesh V. Vohra, 2021. "Competitive Equilibrium and Trading Networks: A Network Flow Approach," Operations Research, INFORMS, vol. 69(1), pages 114-147, January.
    11. Herings, P.J.J. & Zhou, Yu, 2025. "Harmonious Equilibria in Roommate Problems," Other publications TiSEM bf3f5d8c-9cd0-4b5c-89f2-0, Tilburg University, School of Economics and Management.
    12. Biró, Péter & Iñarra, Elena & Molis, Elena, 2016. "A new solution concept for the roommate problem: Q-stable matchings," Mathematical Social Sciences, Elsevier, vol. 79(C), pages 74-82.
    13. Hirata, Daisuke & Kasuya, Yusuke & Tomoeda, Kentaro, 2021. "Stability against robust deviations in the roommate problem," Games and Economic Behavior, Elsevier, vol. 130(C), pages 474-498.
    14. Klaus, Bettina & Klijn, Flip & Walzl, Markus, 2010. "Stochastic stability for roommate markets," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2218-2240, November.
    15. Morrill, Thayer, 2010. "The roommates problem revisited," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1739-1756, September.
    16. Richter, Michael & Rubinstein, Ariel, 2024. "Unilateral stability in matching problems," Journal of Economic Theory, Elsevier, vol. 216(C).
    17. Hirata, Daisuke & Kasuya, Yusuke & Tomoeda, Kentaro, 2023. "Weak stability against robust deviations and the bargaining set in the roommate problem," Journal of Mathematical Economics, Elsevier, vol. 105(C).
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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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