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Stable Matching With Incomplete Information
Author(s) -
Liu Qingmin,
Mailath George J.,
Postlewaite Andrew,
Samuelson Larry
Publication year - 2014
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta11183
Subject(s) - matching (statistics) , complete information , computer science , economics , econometrics , mathematical economics , mathematics , statistics
We formulate a notion of stable outcomes in matching problems with one‐sided asymmetric information. The key conceptual problem is to formulate a notion of a blocking pair that takes account of the inferences that the uninformed agent might make. We show that the set of stable outcomes is nonempty in incomplete‐information environments, and is a superset of the set of complete‐information stable outcomes. We then provide sufficient conditions for incomplete‐information stable matchings to be efficient. Lastly, we define a notion of price‐sustainable allocations and show that the set of incomplete‐information stable matchings is a subset of the set of such allocations.