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Deferred Acceptance with Compensation Chains

Piotr Dworczak

Operations Research, 2021, vol. 69, issue 2, 456-468

Abstract: I introduce a class of algorithms called deferred acceptance with compensation chains (DACC). DACC algorithms generalize the Gale–Shapley algorithm by allowing both sides of the market to make offers. The main result is a characterization of the set of stable matchings: a matching is stable if and only if it is the outcome of a DACC algorithm. The proof of convergence of DACC algorithms uses a novel technique based on a construction of a potential function.

Keywords: matching; stability; deferred acceptance; compensation chains (search for similar items in EconPapers)
Date: 2021
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Handle: RePEc:inm:oropre:v:69:y:2021:i:2:p:456-468