Matching with Contracts: The Critical Role of Irrelevance of Rejected Contracts
We show that an ambiguity in setting the primitives of the matching with contracts model by Hatfield and Milgrom (2005) has serious implications for the model. Of the two ways to clear the ambiguity, the first (and what we consider more "clean") remedy renders several of the results of the paper invalid in the absence of an additional irrelevance of removed contracts condition implicitly assumed throughout the paper, whereas the second remedy results in the lack of transparency in presentation of results while at the same time reducing the scope of the analysis with no clear benefit.
|Date of creation:||31 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://fmwww.bc.edu/EC/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ahmet Alkan, 2002. "A class of multipartner matching markets with a strong lattice structure," Economic Theory, Springer, vol. 19(4), pages 737-746.
- Tayfun S�nmez, 2013.
"Bidding for Army Career Specialties: Improving the ROTC Branching Mechanism,"
Journal of Political Economy,
University of Chicago Press, vol. 121(1), pages 186 - 219.
- Tayfun Sönmez, 2011. "Bidding for Army Career Specialties: Improving the ROTC Branching Mechanism," Boston College Working Papers in Economics 783, Boston College Department of Economics.
- Hatfield, John William & Kojima, Fuhito, 2010. "Substitutes and stability for matching with contracts," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1704-1723, September.
- Federico Echenique, 2012. "Contracts versus Salaries in Matching," American Economic Review, American Economic Association, vol. 102(1), pages 594-601, February.
- Tayfun Sönmez & Tobias B. Switzer, 2011. "Matching with (Branch-of-Choice) Contracts at United States Military Academy," Boston College Working Papers in Economics 782, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:boc:bocoec:804. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F Baum)
If references are entirely missing, you can add them using this form.