Stability and efficiency of partitions in matching problems

Stability and efficiency of partitions in matching problems

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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:
Abstract:

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.

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