Stability and competitive equilibrium in matching markets with transfers
ACM SIGecom Exchanges
Two-sided matching with partial information
Proceedings of the fourteenth ACM conference on Electronic commerce
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It is well known that a stable matching in a many-to-one matching market with couples need not exist. We introduce a new matching algorithm for such markets and show that for large random markets the algorithm will find a stable matching with high probability. In our model we allow the number of couples to grow at a near-linear rate. Furthermore, truth-telling is an approximated equilibrium in the game induced by the new matching algorithm. Our results are tight: for markets in which the number of couples grows at a linear rate, we show that with constant probability no stable matching exists.