Incomplete information and singleton cores in matching markets

We study ordinal Bayesian Nash equilibria of stable mechanisms in centralized matching markets under incomplete information. We show that truthtelling is an ordinal Bayesian Nash equilibrium of the revelation game induced by a common belief and a stable mechanism if and only if all the profiles in t...

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Detalles Bibliográficos
Autores: Ehlers, Lars|||0000-0002-9521-9931, Massó, Jordi|||0000-0003-3712-0041
Tipo de recurso: artículo
Fecha de publicación:2007
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:143508
Acceso en línea:https://ddd.uab.cat/record/143508
https://dx.doi.org/urn:doi:10.1016/j.jet.2006.10.007
Access Level:acceso abierto
Palabra clave:Matching market
Incomplete information
Singleton Core
Descripción
Sumario:We study ordinal Bayesian Nash equilibria of stable mechanisms in centralized matching markets under incomplete information. We show that truthtelling is an ordinal Bayesian Nash equilibrium of the revelation game induced by a common belief and a stable mechanism if and only if all the profiles in the support of the common belief have singleton cores. Our result matches the observations of Roth and Peranson (1999) in the National Resident Matching Program (NRMP) in the United States: (i) the cores of the profiles submitted to the clearinghouse are small and (ii) while truth-telling is not a dominant strategy most participants of the NRMP truthfully reveal their preferences