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Von Neumann-Morgenstern farsightedly stable sets in two-sided matching

Article
Author/s: 
Vincent J. Vannetelbosch, Ana Mauleon and Wouter Vergote
Theoretical Economics
Issue number: 
3
Year: 
2011
Journal pages: 
499–521
Webpage [1]
We adopt the notion of von Neumann-Morgenstern (vNM) farsightedly stable sets to determine which matchings are possibly stable when agents are farsighted in one-to-one matching problems. We provide the characterization of vNM farsightedly stable sets: a set of matchings is a vNM farsightedly stable set if and only if it is a singleton subset of the core. Thus, contrary to the vNM (myopically) stable sets [Ehlers, J. of Econ. Theory 134 (2007), 537-547], vNM farsightedly stable sets cannot include matchings that are not in the core. Moreover, we show that our main result is robust to many-to-one matching problems with substitutable preferences: a set of matchings is a vNM farsightedly stable set if and only if it is a singleton set and its element is in the strong core.

Source URL:http://coalitiontheory.net/content/von-neumann-morgenstern-farsightedly-stable-sets-two-sided-matching-0

Links
[1] http://econtheory.org/ojs/index.php/te/article/view/20110499