On Sufficient Conditions for the Existence of Stable Matchings with Contracts

S-Tier
Journal: Review of Economic Studies
Year: 2021
Volume: 88
Issue: 3
Pages: 1457-1502

Authors (3)

John William Hatfield (not in RePEc) Scott Duke Kominers (Harvard University) Alexander Westkamp (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We characterize when a stable and strategy-proof mechanism is guaranteed to exist in the setting of many-to-one matching with contracts. We introduce three novel conditions—observable substitutability, observable size monotonicity, and non-manipulability via contractual terms—and show that when these conditions are satisfied, the cumulative offer mechanism is the unique mechanism that is stable and strategy-proof (for workers). Moreover, we show that our three conditions are, in a sense, necessary: if the choice function of some firm fails any of our three conditions, we can construct unit-demand choice functions for the other firms such that no stable and strategy-proof mechanism exists. Thus, our results provide a rationale for the ubiquity of cumulative offer mechanisms in practice.

Technical Details

RePEc Handle
repec:oup:restud:v:88:y:2021:i:3:p:1457-1502.
Journal Field
General
Author Count
3
Added to Database
2026-01-25