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A Theory of Stability in Many-to-Many Matching Markets

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  • Echenique, Federico
  • Oviedo, Jorge

Abstract

We develop a theory of stability in many-to-many matching markets. We give conditions under which the setwise-stable set, a core-like concept, is nonempty and can be approached through an algorithm. The setwise-stable set coincides with the pairwise-stable set, and with the predictions of a non-cooperative bargaining model. The set-wise stable set possesses the canonical conflict/coincidence of interest properties from many-to-one, and one-to-one models. The theory parallels the standard theory of stability for many-to-one, and one-to-one, models. We provide results for a number of core-like solutions, besides the setwise-stable set.

Suggested Citation

  • Echenique, Federico & Oviedo, Jorge, 2003. "A Theory of Stability in Many-to-Many Matching Markets," Working Papers 1185, California Institute of Technology, Division of the Humanities and Social Sciences.
  • Handle: RePEc:clt:sswopa:1185
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    File URL: http://www.hss.caltech.edu/SSPapers/sswp1185c.pdf
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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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