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Von Neumann-Morgenstern farsightedly stable sets in two-sided matching

Author

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  • MAULEON, Ana

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • VANNETELBOSCH, Vincent

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • VERGOTE, Wouter

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

We adopt the notion of von Neumann-Morgenstern farsightedly stable sets to predict which matchings are possibly stable when agents are farsighted in one-to-one matching problems. We provide the characterization of von Neumann-Morgenstern farsightedly stable sets: a set of matchings is a von Neumann-Morgenstern farsightedly stable set if and only if it is a singleton set and its element is a corewise stable matching. Thus, contrary to the von Neumann-Morgenstern (myopically) stable sets, von Neumann-Morgenstern farsightedly stable sets cannot include matchings that are not corewise stable ones. Moreover, we show that our main result is robust to many-to-one matching problems with responsive preferences.

Suggested Citation

  • MAULEON, Ana & VANNETELBOSCH, Vincent & VERGOTE, Wouter, 2008. "Von Neumann-Morgenstern farsightedly stable sets in two-sided matching," LIDAM Discussion Papers CORE 2008016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2008016
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    References listed on IDEAS

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    More about this item

    Keywords

    matching problem; von Neumann-Morgenstern stable sets; farsighted stability;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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