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Competition and Resource Sensitivity in Marriage and Roommate Markets

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  • Bettina Klaus

Abstract

We consider one-to-one matching markets in which agents can either be matched as pairs or remain single. In these so-called roommate markets agents are consumers and resources at the same time. We investigate two new properties that capture the effect newcomers have on incumbent agents. Competition sensitivity focuses on newcomers as additional consumers and requires that some incumbents will suffer if competition is caused by newcomers. Resource sensitivity focuses on newcomers as additional resources and requires that this is beneficial for some incumbents. For solvable roommate markets, we provide the first characterizations of the core using either competition or resource sensitivity. On the domain of all roommate markets, we obtain two associated impossibility results.

Suggested Citation

  • Bettina Klaus, 2010. "Competition and Resource Sensitivity in Marriage and Roommate Markets," Cahiers de Recherches Economiques du Département d'économie 10.03, Université de Lausanne, Faculté des HEC, Département d’économie.
    • Handle: RePEc:lau:crdeep:10.03
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    2. Thayer Morrill, 2013. "An alternative characterization of the deferred acceptance algorithm," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(1), pages 19-28, February.
    3. Mehmet Karakaya & Bettina Klaus, 2017. "Hedonic coalition formation games with variable populations: core characterizations and (im)possibilities," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(2), pages 435-455, May.
    4. Antonio Romero-Medina & Matteo Triossi, 2012. "Neutral Mergers Between Bilateral Markets," Documentos de Trabajo 292, Centro de Economía Aplicada, Universidad de Chile.
    5. Klaus, Bettina, 2017. "Consistency and its converse for roommate markets," Games and Economic Behavior, Elsevier, vol. 104(C), pages 43-58.
    6. Kasajima, Yoichi & Toda, Manabu, 2024. "Singles monotonicity and stability in one-to-one matching problems," Games and Economic Behavior, Elsevier, vol. 143(C), pages 269-286.
    7. Mustafa Oǧuz Afacan, 2019. "Matching with restricted trade," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(3), pages 957-977, September.
    8. Duygu Nizamogullari & İpek Özkal-Sanver, 2022. "A note on roommate problems with a limited number of rooms," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 553-560, December.
    9. Burak Can & Bettina Klaus, 2013. "Consistency and population sensitivity properties in marriage and roommate markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 835-862, October.
    10. Yoichi Kasajima & Manabu Toda, 2021. "Singles monotonicity and stability in one-to-one matching problems," Working Papers 2023-1, Waseda University, Faculty of Political Science and Economics.

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    Keywords

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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