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Stability of Equilibrium Outcomes under Deferred Acceptance: Acyclicity and Dropping Strategies

Tello Benjamín ()
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Tello Benjamín: Dirección General de Investigación Económica, Banco de México, Ciudad de México, México

The B.E. Journal of Theoretical Economics, 2017, vol. 17, issue 2, 9

Abstract: We consider two-sided many-to-one matching markets where hospitals have responsive preferences. In this context, we study the preference revelation game induced by the student-proposing deferred acceptance mechanism. We show that acyclicity of the hospitals’ preference profile (Romero-Medina and Triossi 2013a. “Acyclicity and Singleton Cores in Matching Markets.” Economics Letters 118 (1):237–9) is a necessary and sufficient condition to ensure that the outcome of every Nash equilibrium in which each hospital plays a dropping strategy is stable.

Keywords: matching; stability; acyclicity; dropping strategies; Nash equilibria (search for similar items in EconPapers)
JEL-codes: C78 D47 (search for similar items in EconPapers)
Date: 2017
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