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2019 Documento de Trabajo #345

Incentives and implementation in marriage markets with externalities

We study the implementability of stable correspondences in marriage markets with externalities. We prove that, contrary to what happens in markets without externalities, no stable revelation mechanism makes a dominant strategy for the agents on one side of the market to reveal their preferences. However, the stable correspondence is implementable in Nash equilibrium.


Economic Literature Classification Numbers: C72, C78, D62, D78.

Matteo Triossi
María Haydée Fonseca-Mairena

Keywords: Marriage market with externalities; Incentives; Implementation.