In this paper, we extend the stability notion and Bayesian efficiency notion of Liu (2020) to local ones, as well as his result—that under certain intuitive conditions, stable matchings are Bayesian efficient—to an analogous one for local notions. Furthermore, the extended stability notion,...

This paper studies a matching algorithm which is termed incomplete-information deferred acceptance (DA). We show that DA is finite and that it produces a stable market state. We also compare DA with algorithms in the literature, including the complete-information Gale-Shapley algorithm, the...

Customer behavior is often assumed to follow weak rationality, which implies that adding a product to an assortment will not increase the choice probability of another product in that assortment. However, an increasing amount of research has revealed that customers are not necessarily rational...