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  4. May 2017
  5. Stable and Strategy-Proof Matching with Flexible Allotments

Stable and Strategy-Proof Matching with Flexible Allotments

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Abstract

We introduce a framework of matching with flexible allotments that can be used to model firms with cross-division hiring restrictions. Our framework also allows us to nest some prior models of matching with distributional constraints. Building upon our recent work on observable substitutability, we show that multi-division choice functions with flexible allotments enable stable and strategy-proof matching; these results illustrate the value of clearly mapping when stable and strategy-proof matching is possible.

Citation

Hatfield, John William, Scott Duke Kominers, and Alexander Westkamp. 2017. "Stable and Strategy-Proof Matching with Flexible Allotments." American Economic Review, 107 (5): 214-19. DOI: 10.1257/aer.p20171050

Additional Materials

JEL Classification

  • C78 Bargaining Theory; Matching Theory
  • D21 Firm Behavior: Theory
  • D86 Economics of Contract: Theory