Abstract
This note analyzes the possibility of implementing stable outcomes for marriage markets. Our first result shows a contradiction between the use of stable mechanisms and the hypothesis of agents' behavior considered in the Nash equilibrium concept. We analyze the possibility of implementing two sets of stable allocations, by employing two types of mechanisms. The first mechanism is a “now-or-never” choice process that permits us to implement in undominated Nash equilibria the set of all the stable allocations. The second choice process is the classic algorithm in matching theory, the Gale–Shapley mechanism. A reversal property is observed in such a mechanism when agents act strategically. The use of a mechanism which selects the best solution for one side of the market in the absence of strategic behavior yields the best stable solution for the agents on the other side under dominance solvability.Journal of Economic LiteratureClassification Numbers: C72, D78, J41.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
