Abstract
Classical roommate problems define individual rationality by conceiving remaining single as the “outside option”. This conception implicitly assumes that there are always some empty rooms to be shared. However, there are many instances when this is not the case. We introduce roommate problems with a limited number of rooms, where the “outside option” is “having no room”. In this general framework, we show that the core equals the set of Pareto optimal and stable matchings.
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Notes
Morrill (2010) redefines individual rationality as follows: A matching is individually rational if each agent prefers his/her current mate to his/her mates under the initial matching. Vergote (2019) keeps the classical definition of individual rationality: A matching is individually rational if each agent prefers his/her current mate to being single.
Besides the definition of individual rationality, our model differs from Morrill (2010) in two additional ways. Firstly, instead of starting with an initial allocation, we embed the outside option into the model and define a generalized matching problem with a limited number of available rooms. Secondly, we allow individuals to stay single in a room or move with his/her mate to an empty room if it exists. However, Morrill (2010) analyses roommate problems with an even number of agents where each pair of agents is endowed initially with a room. So there is no empty room in any allocations.
|A| denotes the number of the agents in A.
If \(n=|A|\) and \(jP_{i}c_{0}\) for any \(i,j\in A,\) then it is a standard roommate problem.
Note that \(o_{A^{\prime },\mu }+o_{A\backslash A^{\prime },\mu }=o_{A,\mu }\) if and only if \(\underset{i\in A^{\prime }}{\cup }\left\{ \mu (i)\right\} =A^{\prime }\cup \{c_{0}\}\) and \(\underset{i\in A\backslash A^{\prime }}{ \cup }\left\{ \mu (i)\right\} =(A\backslash A^{\prime })\cup \{c_{0}\}.\)
The last condition differs from “exchange proofness” proposed by Alcalde (1995), asking the permission of their current mates for an exchange.
As Vergote (2019) defines the set of directly stable matchings as the set of matchings that are not directly blocked by any coalitions, the set of directly stable matchings and the direct core are equivalent. Although our core definition is identical to Vergote’s (2019) direct core; according to our definition of blocking, the set of stable matchings is a superset of Vergote’s (2019) set of directly stable matchings and the direct core.
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Nizamogullari, D., Özkal-Sanver, İ. A note on roommate problems with a limited number of rooms. Rev Econ Design 26, 553–560 (2022). https://doi.org/10.1007/s10058-022-00297-4
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DOI: https://doi.org/10.1007/s10058-022-00297-4