Sep 21, 2008

Articles in journals

Pais, J.

35

17

In the college admissions problem, we consider the incentives confronting agents who face the prospect of being matched by a random stable mechanism. We provide a fairly complete characterization of ordinal equilbria. Namely, every ordinal equilibrium yields a degenerate probability distribution. Furthermore, individual rationality is a necessary and sufficient condition for an equilibrium outcome, while stability is guaranteed in ordinal equilibrium where firms act straightforwardly. Finally, we relate equilibrium behavior in random and in deterministic mechanisms.

Matching,College Admissions Problem,Stability,Random Mechanism