2013
DOI: 10.3982/ecta10011
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The Revealed Preference Theory of Stable and Extremal Stable Matchings

Abstract: We investigate the testable implications of the theory of stable matchings. We provide a characterization of the matchings that are rationalizable as stable matchings when agents' preferences are unobserved. The characterization is a simple nonparametric test for stability, in the tradition of revealed preference tests. We also characterize the observed stable matchings when monetary transfers are allowed and the stable matchings that are best for one side of the market: extremal stable matchings. We find that… Show more

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Cited by 52 publications
(1 citation statement)
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“…This approach to minimising self-reporting is based on the revealed preference theory, which is a way to infer the preferences of individuals given the observed choices. The revealed preference theory, which is a theory from microeconomics, essentially states that individuals' actions reveal more about their preferences than their words (Echenique et al 2013;Samuelson 1948…”
Section: Theoretical Frameworkmentioning
confidence: 99%
“…This approach to minimising self-reporting is based on the revealed preference theory, which is a way to infer the preferences of individuals given the observed choices. The revealed preference theory, which is a theory from microeconomics, essentially states that individuals' actions reveal more about their preferences than their words (Echenique et al 2013;Samuelson 1948…”
Section: Theoretical Frameworkmentioning
confidence: 99%