Stability vs. No Justified Envy
13 Pages Posted: 1 Apr 2020
Date Written: March 6, 2020
Stability and "no justified envy" are used almost synonymously in the matching theory literature. However, they are conceptually different and have logically separate properties. We generalize the definition of justified envy to environments with arbitrary school preferences, feasibility constraints, and contracts, and show that stable allocations may admit justified envy. When choice functions are substitutable, the outcome of the deferred acceptance algorithm is both stable and admits no justified envy.
Keywords: Stability, no justified envy, fairness
JEL Classification: D47, C78, D71
Suggested Citation: Suggested Citation