Econometrica: Jan 2019, Volume 87, Issue 1

Stable Matching in Large Economies

https://doi.org/10.3982/ECTA13547
p. 65-110

Yeon‐Koo Che, Jinwoo Kim, Fuhito Kojima

We study stability of two‐sided many‐to‐one matching in which firms' preferences for workers may exhibit complementarities. Although such preferences are known to jeopardize stability in a finite market, we show that a stable matching exists in a large market with a continuum of workers, provided that each firm's choice is convex and changes continuously as the set of available workers changes. We also study the existence and structure of stable matchings under preferences exhibiting substitutability and indifferences in a large market. Building on these results, we show that an approximately stable matching exists in large finite economies. We extend our framework to ensure a stable matching with desirable incentive and fairness properties in the presence of indifferences in firms' preferences.



Log In To View Full Content

Supplemental Material

Supplement to "Stable Matching in Large Economies"

This appendix contains material not found within the manuscript.

Read More View PDF


Back