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Von Neumann-Morgenstern Farsightedly Stable Sets in Two-Sided Matching

Author

Listed:
  • Vincent Vannetelbosch

    (CORE University of Louvain)

  • Ana Mauleon

    (CORE, University of Louvain)

  • Wouter Vergote

    (CEREC, Facultés Universitaires Saint-Louis, and CORE, University of Louvain)

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

  • Vincent Vannetelbosch & Ana Mauleon & Wouter Vergote, 2008. "Von Neumann-Morgenstern Farsightedly Stable Sets in Two-Sided Matching," Working Papers 2008.29, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2008.29
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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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