Hiring procedures to implement stable allocations
We implement the core correspondence in Subgame Perfect Equilibrium using a simplesequential mechanism in which firms propose a salary to each worker (in the first stage). Then ,each worker accepts at most one proposal (second stage). Moreover, we show that, if agents'preferences are additive, this mechanism implements in Subgame Perfect Equilibrium that firms'optimal correspondence when firms employ undominated strategies. Finally we construct anothersimple sequential mechanism to implement workers' optimal correspondence when agents'preferences are additive.
|Date of creation:||Apr 1997|
|Publication status:||Published by Ivie|
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- Alcalde, Jose, 1996.
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- Romero-Medina, Antonio & Alcalde, J., 1999. "Simple mechanisms to implement the core of college admissions problems," UC3M Working papers. Economics 6124, Universidad Carlos III de Madrid. Departamento de Economía.
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- Serrano Roberto, 1995. "A Market to Implement the Core," Journal of Economic Theory, Elsevier, vol. 67(1), pages 285-294, October.
- Tayfun Sönmez & Tarik Kara, 1997. "Implementation of college admission rules (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(2), pages 197-218.
- Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November. Full references (including those not matched with items on IDEAS)
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