Article ID: | iaor20061347 |
Country: | Germany |
Volume: | 59 |
Issue: | 3 |
Start Page Number: | 193 |
End Page Number: | 205 |
Publication Date: | Nov 2005 |
Journal: | Theory and Decision |
Authors: | zkal-Sanver Ipek |
We define two versions of stability and efficiency of partitions and analyze their relationships for some matching rules. The stability and efficiency of a partition depends on the matching rule f. The results are stated under various membership property rights axioms. It is shown that in a world where agents can freely exit from and enter coalitions, whenever the matching rule is individually rational and Pareto optimal, the set of f-stable and f-efficient partitions coincide and it is unique: the grand coalition. Then we define a weaker version of stability and efficiency, namely spcific to a given preference profile and find some negative results for stable matching rules.