Deferred Acceptance with Compensation Chains
Operations Research · 2021 · Volume 69 · Issue 2
Abstract
I introduce a class of algorithms called deferred acceptance with compensation chains (DACC). DACC algorithms generalize the Gale–Shapley algorithm by allowing both sides of the market to make offers. The main result is a characterization of the set of stable matchings: a matching is stable if and only if it is the outcome of a DACC algorithm. The proof of convergence of DACC algorithms uses a novel technique based on a construction of a potential function.
Keywords
games/group decisions: cooperative, Operations and Supply Chains, matching, stability, deferred acceptance, compensation chains
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