Stability with One-Sided Incomplete Information
37 Pages Posted: 12 Jan 2017
Date Written: January 1, 2017
Two notions of stability, ex ante stability and Bayesian stability, are investigated in a matching model with non-transferrable utility, interdependent preferences, and one-sided incomplete information. Ex ante stable matching-outcomes are unblocked for every belief on the blocking partner’s type while Bayesian stable matching-outcomes are unblocked with respect to prior beliefs. Ex ante stability is a minimal requirement. Bayesian stability is a more selective desideratum with sound efficiency properties.
Keywords: Stable Matching, Incomplete Information, Incomplete-Information Core
JEL Classification: C78, D47, D82
Suggested Citation: Suggested Citation