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Take-it-or-leave-it contracts in many-to-many matching markets

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  • Romero-Medina, Antonio
  • Triossi, Matteo

Abstract

We study a class of sequential non-revelation mechanisms through which hospitals make simultaneous take-it-or-leave-it offers to doctors. The inclusion of contracts shrinks the set of equilibrium outcomes and harms doctors more than hospitals, but it maintains the stability of the set of equilibrium outcomes. Our analysis reveals the existence of a first-mover advantage that is absent from the model without contracts. The mechanisms of this class are outcome equivalent and implement the set of stable allocations in subgame perfect equilibrium when enough competitive pressure is present. Equilibrium outcomes form a lattice when preferences are substitutable.

Suggested Citation

  • Romero-Medina, Antonio & Triossi, Matteo, 2018. "Take-it-or-leave-it contracts in many-to-many matching markets," UC3M Working papers. Economics 24368, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:24368
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    References listed on IDEAS

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    1. Ronald Fischer, 2017. "Efectos de la Reforma del Código de Aguas," Documentos de Trabajo 335, Centro de Economía Aplicada, Universidad de Chile.
    2. Klaus, Bettina & Klijn, Flip, 2017. "Non-revelation mechanisms for many-to-many matching: Equilibria versus stability," Games and Economic Behavior, Elsevier, vol. 104(C), pages 222-229.

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    More about this item

    Keywords

    Many-to-many;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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