Article ID Journal Published Year Pages File Type
5100124 Journal of Economic Theory 2017 36 Pages PDF
Abstract
Many real matching markets are subject to distributional constraints. To guide market designers faced with constraints, we propose new stability concepts. A matching is strongly stable if satisfying blocking pairs inevitably violates a constraint. We show that a strongly stable matching may not exist, and that existence is guaranteed if and only if all distributional constraints are trivial. To overcome this difficulty, we propose a more permissive concept, weak stability. We demonstrate a weakly stable matching always exists, implies efficiency, and is characterized by standard normative axioms. These results are obtained in a more general environment than those in existing studies, accommodating a wide variety of applications.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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