We consider strategic issues in one-to-one matching with externalities. We show that no core (stable) mechanism is … strategy-proof, extending an impossibility result of Roth (1982) obtained in the absence of externalities. Moreover, we show … result of Demange et al. (1987) obtained in the absence of externalities …

investigate the incentives to expend effort for a prize that produces consumption externalities and consider alternative … regulatory policies. We find relatively more global consumption externalities will increase (decrease) rent seeking when … consumption externalities are negative (positive). We show how introducing Pigouvian taxation (possibly with revenue transfer) and …

externalities. An organization is defined as a group of agents, together with a set of bilateral relations, formally, a connected … graph. Because of the presence of externalities, the profitability of coalitional threats to an organization depend on the … externalities, while the fully connected organization emerges under negative. This result is shown to hold independently of the …