Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5071421 | Games and Economic Behavior | 2017 | 20 Pages |
Abstract
In many-to-many matching with contracts, a new market design issue arises: The design of the contract language can impact the set of stable outcomes. Bundling contractual primitives encourages substitutability of agents' preferences over contracts and makes stable outcomes more likely to exist; however, bundling also makes the contractual language less expressive. Consequently, in choosing contract language, market designers face a tradeoff between expressiveness and stability.
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Authors
John William Hatfield, Scott Duke Kominers,