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

24 Pages Posted: 23 Apr 2008

See all articles by Vincent J. Vannetelbosch

Vincent J. Vannetelbosch

Center for Operations Research and Econometrics (CORE)

Ana Mauleon

Université Saint-Louis - Bruxelles; Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

Wouter Vergote

Facultés Universitaires Saint Louis à Bruxelles - CEREC; Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

Date Written: March 1, 2008

Abstract

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.

Keywords: Matching Problem, von Neumann-Morgenstern Stable Sets, Farsighted Stability

JEL Classification: C71, C78

Suggested Citation

Vannetelbosch, Vincent J. and Mauleon Echeverria, Ana Carmen and Vergote, Wouter, Von Neumann-Morgenstern Farsightedly Stable Sets in Two-Sided Matching (March 1, 2008). FEEM Working Paper No. 29.2008. Available at SSRN: https://ssrn.com/abstract=1117904 or http://dx.doi.org/10.2139/ssrn.1117904

Vincent J. Vannetelbosch (Contact Author)

Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
1348 Louvain-la-Neuve, 1348
Belgium

Ana Carmen Mauleon Echeverria

Université Saint-Louis - Bruxelles ( email )

Brussels, 1000
Belgium

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

Wouter Vergote

Facultés Universitaires Saint Louis à Bruxelles - CEREC ( email )

Brussels, 1000
Belgium

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

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