We study the implementation of social choice rules in environments with externalities. We prove the impossibility of implementing efficient and α-individually rational rules in dominant strategies. We prove that the α-core is implementable in Nash equilibrium under mild restrictions and discuss the maximality and the minimality of our results. We extend our analysis to weakly efficient rules.
This paper presents a sequential admission mechanism where students are allowed to send multiple applications to colleges and colleges sequentially decide the applicants to enroll. The irreversibility of agents decisions and the sequential structure of the enrollments make truthful behavior a dominant strategy for colleges. Due to these features, the mechanism implements the set of stable matchings in Subgame Perfect Nash equilibrium. We extend the analysis to a mechanism where colleges make proposals to potential students and students decide sequentially. We show that this mechanism implements the stable set as well.JEL-Classification: C78, D78.
This paper analyzes the role of acyclicity in singleton cores. We show that the absence of simultaneous cycles is a sufficient condition for the existence of singleton cores. Furthermore, acyclicity in the preferences of either side of the market is a minimal condition that guarantees the existence of singleton cores. If firms or workers preferences are acyclical, unique stable matching is obtained through a procedure that resembles a serial dictatorship. Thus, acyclicity generalizes the notion of common preferences. It follows that if the firms or workers preferences are acyclical, unique stable matching is strongly efficient for the other side of the market. JEL Classification Numbers: C71, C78, D71.
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