On the revealed preference analysis of stable aggregate matchings (with Thomas Demuynck)
Theoretical Economics, 17 (2022), 1651β1682
π Final version
Echenique, Lee, Shum, and Yenmez (2013) established the testable revealed preference restrictions for stable aggregate matching with transferable (TU) and non-transferable utility (NTU) and for extremal stable matchings. In this paper, we rephrase their restrictions in terms of properties on a corresponding bipartite graph. From this, we obtain a simple condition that verifies whether a given aggregate matching is rationalisable. For matchings that are not rationalisable, we provide a simple greedy algorithm that computes the minimum number of matches that needs to be removed to obtain a rationalisable matching. We also show that the related problem of finding the minimum number of types that we need to remove in order to obtain a rationalisable matching is NP-complete.