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Conditional Stable Matchings

In matching theory of contracts the substitutes condition plays an essential role to ensure the existence of stable matchings. We study many-to-many matchings where groups of individuals, of size possibly greater than two, are matched to a set of institutions. Real-world examples include orphan brothers accepting an adoptive family conditional on all of them being included; hiring contracts that may only be chosen together; or a situation where a firm accepts to hire several workers only if they accept to work on different days (part-time jobs). We demonstrate by several examples that such extra conditions may alter the natural choice maps so that stable matchings cannot be obtained by applying the standard theorems. We overcome this difficulty by introducing a new construction of choice maps. We prove that they yield stable matchings if the construction respects an "anti-trust" rule on the supply side of the market.

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Paper provided by UMBC Department of Economics in its series UMBC Economics Department Working Papers with number 12-03.

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Length: 18 pages
Date of creation: 12 May 2012
Date of revision:
Handle: RePEc:umb:econwp:1203
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  1. Bettina Klaus & Flip Klijn, 2004. "Paths to Stability for Matching Markets with Couples," UFAE and IAE Working Papers 604.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 01 Dec 2005.
  2. Bettina Klaus & Flip Klijn, 2004. "Fair and Efficient Student Placement with Couples," UFAE and IAE Working Papers 616.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 01 Mar 2006.
  3. Federico Echenique & Mehmet B. Yenmez, 2005. "A Solution to Matching with Preferences over Colleagues," Working Papers 2005.120, Fondazione Eni Enrico Mattei.
  4. John William Hatfield & Fuhito Kojima, 2008. "Matching with Contracts: Comment," American Economic Review, American Economic Association, vol. 98(3), pages 1189-94, June.
  5. Federico Echenique & Jorge Oviedo, 2003. "Core Many-to-one Matchings by Fixed-point Methods," Game Theory and Information 0302001, EconWPA.
  6. Jorge Oviedo & Federico Echenique, 2005. "A Theory of Stability in Many-to-Many Matching Markets," 2005 Meeting Papers 233, Society for Economic Dynamics.
  7. Claus-Jochen Haake & Bettina-Elisabeth Klaus, 2008. "Stability and Nash Implementation in Matching Markets with Couples," Harvard Business School Working Papers 09-017, Harvard Business School.
  8. Klaus, Bettina & Klijn, Flip, 2005. "Stable matchings and preferences of couples," Journal of Economic Theory, Elsevier, vol. 121(1), pages 75-106, March.
  9. Vilmos Komornik & Zsolt Komornik & Christelle Viauroux, 2010. "Stable Schedule Matchings," UMBC Economics Department Working Papers 10-120, UMBC Department of Economics, revised 01 Jul 2011.
  10. Marek Pycia, 2012. "Stability and Preference Alignment in Matching and Coalition Formation," Econometrica, Econometric Society, vol. 80(1), pages 323-362, 01.
  11. Roth, Alvin E, 1984. "Stability and Polarization of Interests in Job Matching," Econometrica, Econometric Society, vol. 52(1), pages 47-57, January.
  12. 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.
  13. Alkan, Ahmet & Gale, David, 2003. "Stable schedule matching under revealed preference," Journal of Economic Theory, Elsevier, vol. 112(2), pages 289-306, October.
  14. Dimitrov, Dinko & Lazarova, Emiliya, 2011. "Two-sided coalitional matchings," Mathematical Social Sciences, Elsevier, vol. 62(1), pages 46-54, July.
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