Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5100131 | Journal of Economic Theory | 2017 | 28 Pages |
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.
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Authors
Sushil Bikhchandani,