Von Neumann-Morgenstern stable-set solutions in the assignment market

• BSE Working Paper: 112316 | September 15
• Keywords: assignment game , core , dominance , von Neumann-Morgenstern stable set
• JEL codes: C71
• assignment game
• core
• dominance
• von Neumann-Morgenstern stable set

Existence of von Neumann-Morgenstern solutions (stable sets) is proved for any assignment game. For each optimal matching, a stable set is defined as the union of the core of the game and the core of the subgames that are compatible with this matching. All these stable sets exclude third-party payments and form a lattice with respect to the same partial order usually defined on the core.