Von Neumann-Morgenstern Farsightedly Stable Sets in Two-Sided Matching

We adopt the notion of von Neumann-Morgenstern farsightedly stable sets to predict which matchings are possibly stable when agents are farsighted in one-to-one matching problems. We provide the characterization of von Neumann-Morgenstern farsightedly stable sets: a set of matchings is a von Neumann-Morgenstern farsightedly stable set if and only if it is a singleton set and its element is a corewise stable matching. Thus, contrary to the von Neumann-Morgenstern (myopically) stable sets, von Neumann-Morgenstern farsightedly stable sets cannot include matchings that are not corewise stable ones. Moreover, we show that our main result is robust to many- to-one matching problems with responsive preferences.


Issue Date:
2008-03
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/6287
Total Pages:
24
JEL Codes:
C71; C78
Series Statement:
CTN Nota di Lavoro
29.2008




 Record created 2017-04-01, last modified 2017-04-04

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