Stable matching under forward-induction reasoning

Luciano Pomatto ()
Additional contact information
Luciano Pomatto: Division of the Humanities and Social Sciences, Caltech

Theoretical Economics, 2022, vol. 17, issue 4

Abstract: A standing question in the theory of matching markets is how to define stability under incomplete information. This paper proposes an epistemic approach. Agents negotiate through offers, and offers are interpreted according to the highest possible degree of rationality that can be ascribed to their proponents. A matching is deemed ``stable'' if maintaining the current allocation is a rationalizable action for each agent. The main result shows an equivalence between this notion and ``incomplete-information stability,'' a cooperative solution concept put forward by Liu, Mailath, Postlewaite and Samuelson (2014) for markets with incomplete information.

Keywords: Matching; stability; incomplete information; rationalizability (search for similar items in EconPapers)
JEL-codes: D82 D83 (search for similar items in EconPapers)
Date: 2022-11-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20221619/35305/1038 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:3867

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().