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Stable Many-to-Many Matchings with Contracts

  • Klaus Bettina
  • Walzl Markus


We consider several notions of setwise stability for many-to-many matching markets with contracts and provide an analysis of the relations between the resulting stable sets and pairwise stable sets for general, substitutable, and strongly substitutable preferences. Apart from obtaining “set inclusion results'''' on all three domains, we prove that for substitutable preferences the set of pairwise stable matchings is nonempty and coincides with the set of weakly setwise stable matchings. For strongly substitutable preferences the set of pairwise stable matchings coincides with the set of setwise stable matchings. We also show that Roth’s (1984) stability coincides with pairwise stability for substitutable preferences.

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Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 042.

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Date of creation: 2006
Date of revision:
Handle: RePEc:unm:umamet:2006042
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  1. Jorge Oviedo & Federico Echenique, 2005. "A Theory of Stability in Many-to-Many Matching Markets," 2005 Meeting Papers 233, Society for Economic Dynamics.
  2. Paul Milgrom, 2003. "Matching with Contracts," Working Papers 03003, Stanford University, Department of Economics.
  3. Roth, Alvin E, 1991. "A Natural Experiment in the Organization of Entry-Level Labor Markets: Regional Markets for New Physicians and Surgeons in the United Kingdom," American Economic Review, American Economic Association, vol. 81(3), pages 415-40, June.
  4. Roth, Alvin E, 1984. "Stability and Polarization of Interests in Job Matching," Econometrica, Econometric Society, vol. 52(1), pages 47-57, January.
  5. Bettina Klaus & Flip Klijn, 2004. "Stable Matchings and Preferences of Couples," Working Papers 117, Barcelona Graduate School of Economics.
  6. Bettina Klaus & Flip Klijn & Toshifumi Nakamura, 2007. "Corrigendum: Stable Matchings and Preferences of Couples," UFAE and IAE Working Papers 708.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  7. Klaus, Bettina & Walzl, Markus, 2009. "Stable many-to-many matchings with contracts," Journal of Mathematical Economics, Elsevier, vol. 45(7-8), pages 422-434, July.
  8. Sotomayor, Marilda, 1999. "Three remarks on the many-to-many stable matching problem," Mathematical Social Sciences, Elsevier, vol. 38(1), pages 55-70, July.
  9. Hideo Konishi & M. Utku Ünver, 2003. "Credible Group Stability in Many-to-Many Matching Problems," Game Theory and Information 0309005, EconWPA, revised 06 Sep 2003.
  10. Roth, Alvin E, 1986. "On the Allocation of Residents to Rural Hospitals: A General Property of Two-Sided Matching Markets," Econometrica, Econometric Society, vol. 54(2), pages 425-27, March.
  11. 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.
  12. 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.
  13. 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.
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