A Two-Sided Discrete-Concave Market with Possibly Bounded Side Payments: An Approach by Discrete Convex Analysis
Satoru Fujishige,
Akihisa Tamura
Research Institute for Mathematical Sciences, Kyoto University, Kyoto 606-8502, Japan
Department of Mathematics, Keio University, Yokohama 223-8522, Japan
fujishig{at}kurims.kyoto-u.ac.jp, http://www.kurims.kyoto-u.ac.jp/
fujishig
aki-tamura{at}math.keio.ac.jp, http://www.math.keio.ac.jp/local/aki-tamura/
The marriage model due to Gale and Shapley [Gale, D., L. S. Shapley. 1962. College admissions and the stability of marriage. Amer. Math. Monthly 69 915] and the assignment model due to Shapley and Shubik [Shapley, L. S., M. Shubik. 1972. The assignment game I: The core. Internat. J. Game Theory 1 111130] are standard in the theory of two-sided matching markets. We give a common generalization of these models by utilizing discrete-concave functions and considering possibly bounded side payments. We show the existence of a pairwise stable outcome in our model. Our present model is a further natural extension of the model examined in our previous paper [Fujishige, S., A. Tamura. A general two-sided matching market with discrete concave utility functions. Discrete Appl. Math. 154 950970], and the proof of the existence of a pairwise stable outcome is even simpler than the previous one.
Key Words: marriage model; assignment model; pairwise stability; bounded side payments; discrete convex analysis
History: Received: August 17, 2004;
revision received: October 31, 2005;
Copyright © 2007 by INFORMS.