STABLE MATCHING WITH INCOMPLETE INFORMATION

Abstract

We extend the notion of stability of matching outcomes introduced by previous literature on one-sided asymmetric information environments to two-sided asymmetric information environments. This involves extending the notion of the blocking pair to involve two uninformed agents, and the inferences that they can make based on no blocking actions. We also extend the proven result, that a sufficient condition for efficiency is stability in a one-sided asymmetric information model, to our two-sided one. Finally, we also show that a complete-information stable matching outcome must be stable in our model.