Strategy-proof and Efficient Job Matching with Participation Constraints

Sushil Bikhchandani and Debasis Mishra

Papers from arXiv.org

Abstract: We study the design of strategy-proof and efficient mechanisms satisfying participation constraints in the job-matching problem. Each firm can hire multiple workers and each worker can be employed at only one firm. While firm utilities over subsets of workers are common knowledge, worker disutilities for working at each firm are private information. The VCG mechanism is the unique mechanism that is strategy-proof, efficient, and individually rational for workers; however, it may not be individual rational for firms. We show that the VCG mechanism is individually rational for firms if and only if firm utilities satisfy a condition called weak substitutes. We then strengthen participation constraints of firms to {\sl strong individual rationality}, which requires that each firm has no incentive to fire some of the workers assigned to it. The VCG mechanism is strongly individual rational if and only if firm utilities satisfy submodularity.

Date: 2026-05
References: Add references at CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2605.01715 Latest version (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:arx:papers:2605.01715

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().