Market Structure and Matching with Contracts

Arbeitspapier

Ostrovsky [10] develops a theory of stability for a model of matching in exogenously given networks. For this model a generalization of pairwise stability, chain stability, can always be satisfied as long as agents’ preferences satisfy same side substitutability and cross side complementarity. Given this preference domain I analyze the interplay between properties of the network structure and (cooperative) solution concepts. The main structural condition is an acyclicity notion that rules out the implementation of trading cycles. It is shown that this condition and the restriction that no pair of agents can sign more than one contract with each other are jointly necessary and sufficient for (i) the equivalence of group and chain stability, (ii) the core stability of chain stable networks, (iii) the efficiency of chain stable networks, (iv) the existence of a group stable network, and (v) the existence of an efficient and individually stable network. These equivalences also provide a rationale for chain stability in the unrestricted model. The (more restrictive) conditions under which chain stability coincides with the core are also characterized.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Bonn Econ Discussion Papers ; No. 02/2010

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Cooperative Games ; Bargaining Theory; Matching Theory ; Network Formation and Analysis: Theory
• Thema: Matching with Contracts ; Network Structure ; Chain Stability ; Acyclicity ; Group Stability ; Core ; Efficiency ; Netzwerk ; Nichtkooperatives Spiel ; Matching ; Marktstruktur ; Gleichgewichtsstabilität ; Vertragstheorie ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Westkamp, Alexander
• Ereignis: Veröffentlichung
• (wer): University of Bonn, Bonn Graduate School of Economics (BGSE)
• (wo): Bonn
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/38801
• Letzte Aktualisierung: 20.09.2024, 08:24 MESZ