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Matching with Contracts

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  • Paul Milgrom

Abstract

March 2003 We introduce a two-sided matching model with contracts that subsumes and extends the Gale-Shapley matching model, the Kelso-Crawford labor market model and the Ausubel-Milgrom package auction model. We identify the maximal set of preferences over contracts for which a stable match exists and the narrower set of preferences for which an analog of Roth’s “rural hospitals” result holds. Using the extended model, we characterize the dynamics of re-matching following a retirement and explore doctors’ incentives to report truthfully. Working Papers Index

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  • Paul Milgrom, 2003. "Matching with Contracts," Working Papers 03003, Stanford University, Department of Economics.
    • Handle: RePEc:wop:stanec:03003
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