Article ID Journal Published Year Pages File Type
5100131 Journal of Economic Theory 2017 28 Pages PDF
Abstract
Two notions of stability, ex ante stability and Bayesian stability, are investigated in a matching model with non-transferrable utility, interdependent preferences, and one-sided incomplete information. Ex ante stable matching-outcomes are unblocked for every belief on the blocking partner's type while Bayesian stable matching-outcomes are unblocked with respect to prior beliefs. Ex ante stability is a minimal requirement. Bayesian stability is a more selective desideratum with sound efficiency properties.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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