College Admissions with Complementarities
23 Pages Posted: 11 Oct 2016 Last revised: 3 Apr 2017
Date Written: April 2, 2017
We study many-to-one matching with complementarities. Real life examples include college admissions with two-sided monetary transfers, teacher assignment with different teaching loads, worker assignment. Due to the presence of complementarities, the conditions that are essential for the existence of stable allocation fail. Despite this failure, we provide conditions to guarantee the existence of stable allocation. To our knowledge this is the first paper obtaining positive result related to existence of (group) stable matching and existence of strategy-proof and (group) stable mechanism in the presence of complementarities.
Keywords: pairwise stability, group stability, Max-Min criterion, budget constraints
JEL Classification: C78, D47
Suggested Citation: Suggested Citation