Search arXiv⌕ Search

arXiv · 2306.17773

Obvious Manipulations in Matching without and with Contracts

Abstract

This paper explores many-to-one matching models, both with and without contracts, where doctors' preferences are private and hospitals' preferences are public and substitutable. It is known that any stable-dominating mechanism --which is either stable or individually rational and Pareto-dominates (from the doctors' perspective) a stable mechanism--, is susceptible to manipulation by doctors. Our study focuses on \textit{obvious manipulations} and identifies stable-dominating mechanisms that prevent them. Without contracts, we show that more efficient mechanisms are less likely to be obviously manipulable and that any stable-dominating mechanism is not obviously manipulable. However, with contracts, none of these results hold. While we demonstrate that the Doctor-Proposing Deferred Acceptance (DA) Mechanism remains not obviously manipulable, we show that the Hospital-Proposing DA Mechanism and any efficient mechanism that Pareto-dominates the Doctor-Proposing DA Mechanism become (very) obviously manipulable, in the model with contracts.

Explore related subjects

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

R. Pablo Arribillaga, E. Pepa Risma. 2024-10-16. Obvious Manipulations in Matching without and with Contracts. https://arxiv.org/abs/2306.17773

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

Constraint Preferences: Inattention and Aggregation

We study robust decision problems when individuals have maxmin preferences whose belief sets are neighborhoods around reference models, commonly known as "constraint preferences." We first show that a more disciplined form of rationally inattentive behavior is equivalent to the behavior implied by a subclass of constraint preferences. We then introduce an aggregation principle that requires collective beliefs to satisfy every individual's constraint. This requirement links collective beliefs to the information-processing technologies that generate individual constraints. Applications reveal how these technologies determine asset prices, when prediction-market prices become self-confirming, and how much dynamic mechanisms can reduce information rents.

econ.TH↗

Insuring the Fallback: Capital, Monitoring, and the Certification of Preserved Human Capability under Improving AI

When generative AI makes the deliverable uninformative, a professional-services provider can still certify the preserved human capability to catch the machine's errors, through a liability pledge whose expected cost falls in that capability. The pledge is credible only up to what can be collected, and that ceiling is set by an underwriter, which bears part of the pledge and audits the insured. The range of client stakes over which one certificate separates has a width bounded by the provider's own capital plus the audited share of the underwriter's capacity, so unmonitored capacity adds nothing to it. Blind capital instead relocates that range upward, through a cross-subsidy that exists only under class rating. Monitoring converts capital into width, removes the cross-subsidy, raises the return to preserving skill, and, because audit information leaks, makes the certificate redundant beyond an interior precision.

econ.TH↗

Complementary Information Sources

A decision maker may have several information sources available and choose which one to consult only after learning the decision problem she faces. When is one such set of sources uniformly more valuable than another? For unrestricted Bayesian decision problems, we show that the answer can be stated entirely in terms of Blackwell comparisons. Form a tagged mixture by drawing a source independently of the state and revealing both its identity and its signal. One source set is more valuable in every decision problem if and only if each tagged mixture of the second source set is Blackwell dominated by some tagged mixture of the first. The result applies to compact, possibly infinite source sets and general signal spaces. It also has an exact quantitative counterpart: the largest normalized value shortfall is the directed Le Cam deficiency between the source sets' tagged hulls. The analogous program for monotone decision problems reveals a boundary. We call the passage from problem-by-problem source-set superiority to a problem-independent pairwise dominance a lifting. The Blackwell lifting does not extend directly to the Lehmann order: mixing sources that individually satisfy the monotone likelihood ratio property (MLRP) need not preserve MLRP, and even when it does, no fixed Lehmann-dominating mixture need exist. Requiring one source to serve a finite bundle of monotone decision problems restores the equivalence.

econ.TH↗