Matching Networks with Bilateral Contracts
We introduce a model in which firms trade goods via bilateral contracts which specify a buyer, a seller, and the terms of the exchange. This setting subsumes (many-to- many) matching with contracts, as well as supply chain matching. When firms' relationships do not exhibit a supply chain structure, stable allocations need not exist. By contrast, in the presence of supply chain structure, a natural substitutability condition characterizes the maximal domain of firm preferences for which stable allocations always exist. Furthermore, the classical lattice structure, rural hospitals theorem, and one-sided strategy-proofness results all generalize to this setting.
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- Abdulkadiroglu, Atila & Pathak, Parag Abishek & Roth, Alvin E., 2009.
"Strategy-Proofness Versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match,"
11077572, Harvard University Department of Economics.
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Boston College Working Papers in Economics
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"A Theory of Stability in Many-to-many Matching Markets,"
Levine's Working Paper Archive
666156000000000374, David K. Levine.
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- Jorge Oviedo & Federico Echenique, 2005. "A Theory of Stability in Many-to-Many Matching Markets," 2005 Meeting Papers 233, Society for Economic Dynamics.
- Federico Echenique & Jorge Oviedo, 2004. "A Theory of Stability in Many-to-many Matching Markets," Game Theory and Information 0401002, EconWPA.
- Klaus, Bettina & Klijn, Flip, 2005.
"Stable matchings and preferences of couples,"
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- Roth, Alvin E, 1986. "On the Allocation of Residents to Rural Hospitals: A General Property of Two-Sided Matching Markets," Econometrica, Econometric Society, vol. 54(2), pages 425-27, March.
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