Abstract

The National Resident Matching program strives for a stable matching of medical students to teaching hospitals. With the presence of couples, stable matchings need not exist. For any student preferences, we show that each instance of a stable match- ing problem has a 'nearby' instance with a stable matching. The nearby instance is obtained by perturbing the capacities of the hospitals. Specically, given a reported capacity kh for each hospital h, we nd a redistribution of the slot capacities k 0 sat- isfyingjkh k 0 j 4 for all hospitals h and P h kh P k 0 P h kh + 9, such that a stable matching exists with respect to k 0 . Our approach is general and applies to other type of complementarities, as well as matchings with contracts.

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