Assignment Models and Reneging
Posted: 11 Apr 2000
We consider a non-cooperative assignment model where we show that any subgame perfect equilibrium is stable, and that an appropriate refinement criterion leads to the p-optimal outcome. We then consider a model with reneging and derive some interesting properties of this game. We show that in this case 'unraveling' may occur. Furthermore, the resulting outcome can be either stable, or unstable.
JEL Classification: C78
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