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One-to-One Matching with Interdependent Preferences

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  • Mumcu, Ayse
  • Saglam, Ismail

Abstract

In this paper, we introduce interdependent preferences to a classical one-to-one matching problem that allows for the prospect of being single, and study the existence and properties of stable matchings. We obtain the relationship between the stable set, the core, and the Pareto set, and give a sufficiency result for the existence of the stable set and the core. We also present several findings on the issues of gender optimality, lattices, strategy-proofness, and rationalizability.

Suggested Citation

  • Mumcu, Ayse & Saglam, Ismail, 2006. "One-to-One Matching with Interdependent Preferences," MPRA Paper 1908, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:1908
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    File URL: https://mpra.ub.uni-muenchen.de/1908/1/MPRA_paper_1908.pdf
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    References listed on IDEAS

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    1. Faruk Gul & Wolfgang Pesendorfer, 2005. "The Canonical Type Space for Interdependent Preferences," Levine's Bibliography 784828000000000434, UCLA Department of Economics.
    2. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 817-869.
    3. Efe A. Ok & Levent Koƚkesen, 2000. "Negatively interdependent preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(3), pages 533-558.
    4. Echenique, Federico & Yenmez, M. Bumin, 2007. "A solution to matching with preferences over colleagues," Games and Economic Behavior, Elsevier, vol. 59(1), pages 46-71, April.
    5. Klaus, Bettina & Klijn, Flip, 2005. "Stable matchings and preferences of couples," Journal of Economic Theory, Elsevier, vol. 121(1), pages 75-106, March.
    6. Sasaki, Hiroo & Toda, Manabu, 1996. "Two-Sided Matching Problems with Externalities," Journal of Economic Theory, Elsevier, vol. 70(1), pages 93-108, July.
    7. Pollak, Robert A, 1976. "Interdependent Preferences," American Economic Review, American Economic Association, vol. 66(3), pages 309-320, June.
    8. Postlewaite, Andrew, 1998. "The social basis of interdependent preferences," European Economic Review, Elsevier, vol. 42(3-5), pages 779-800, May.
    9. Gabrielle Demange & David Gale & Marilda Sotomayor, 1987. "A Further Note on the Stable Matching Problem," Post-Print halshs-00670980, HAL.
    10. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications,in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
    11. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December.
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    Cited by:

    1. repec:ebl:ecbull:v:3:y:2007:i:57:p:1-5 is not listed on IDEAS
    2. Alfredo Salgado-Torres, 2011. "A solution concept for housing market problems with externalities," Economics Bulletin, AccessEcon, vol. 31(1), pages 623-630.
    3. Ismail Saglam & Ayse Mumcu, 2007. "The core of a housing market with externalities," Economics Bulletin, AccessEcon, vol. 3(57), pages 1-5.

    More about this item

    Keywords

    One-to-one matching; externalities;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • 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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