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One-to-one matching problems with location restrictions

Working paper
Author/s: 
Wouter Vergote
Issue number: 
2015/54
Series: 
CORE Discussion papers
Publisher: 
Université Catholique de Louvain
Year: 
2015
Working Paper [1]
This paper introduces a novel set of one-to-one matching problems: matchings subject to location restrictions. When scarcity of matching locations exists some agents may want to form a new partnership without being able to implement it. In this general setting we develop two stability concepts, direct and (coalition) exchange* stability, akin to Gale Shapley stability and exchange stability (Alcalde, 1995) respectively. We show that coalition-exchange* stability is a refinement of direct stability. When no location scarcity exists then direct stability is equivalent to Gale Shapley stability and coalition-exchange* stability is equivalent to requiring both exchange stability (Alcalde, 1995) and Gale Shapley stability. We show that the set of coalition-exchange* stable matchings is a superset of the farsighted core, and equal to the farsighted core if locations are not scarce and the matching problem is individually rational. The paper also shows that an exchange* stable set can not be a strict subset of a farsighted stable set and provides an example of a roommate problem in which no farsighted stable set exists while an exchange* stable set does exist. Finally, the paper obtains that deciding whether the farsighted core of an individually rational roommate problem exists is NP-complete.
Tags: 
Matching [2]

Source URL:http://coalitiontheory.org/content/one-one-matching-problems-location-restrictions

Links
[1] http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2015_54.pdf [2] http://coalitiontheory.org/research-areas/matching