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Stable Matching with Incomplete Information, Second Version

Author

Listed:
  • Qingmin Liu

    (Department of Economics, Columbia University)

  • George J. Mailath

    (Department of Economics, University of Pennsylvania)

  • Andrew Postlewaite

    (Department of Economics, University of Pennsylvania)

  • Larry Samuelson

    (Department of Economics, Yale University)

Abstract
We formulate a notion of stable outcomes in matching problems with one-sided asymmetric information. The key conceptual problem is to formulate a notion of a blocking pair that takes account of the inferences that the uninformed agent might make. We show that the set of stable outcomes is nonempty in incomplete-information environments, and is a superset of the set of complete-information stable outcomes. We then provide sufficient conditions for incomplete-information stable matchings to be efficient. Lastly, we define a notion of price-sustainable allocations and show that the set of incomplete-information stable matchings is a subset of the set of such allocations.

Suggested Citation

  • Qingmin Liu & George J. Mailath & Andrew Postlewaite & Larry Samuelson, 2012. "Stable Matching with Incomplete Information, Second Version," PIER Working Paper Archive 13-028, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 17 Jun 2013.
    • Handle: RePEc:pen:papers:13-028
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Matching; Stability; Stable outcome; Incomplete information; Core;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D - Microeconomics

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