Giving Advice and Perfect Equilibria in Matching Markets (original) (raw)

Our aim is to characterize perfect equilibria in matching markets. Ordinal preferences require the use of an ordinal perfect equilibrium concept. We show that, in the game induced by a random stable mechanism, an ordinal perfect equilibrium strategy lists all the acceptable partners. Moreover, when either the firm" optimal or the worker" optimal mechanisms are considered, truth telling is a very prudent form of behavior and is the unique ordinal perfect equilibrium that may emerge. Finally, in the game induced by these ...