We study the implementability of stable correspondences in marriage markets with externalities. We prove that, contrary to what happens in markets without externalities, no stable revelation mechanism makes a dominant strategy for the agents on one side of the market to reveal their preferences. However, the stable correspondence is implementable in Nash equilibrium.

 

Economic Literature Classification Numbers: C72, C78, D62, D78.

Matteo Triossi

María Haydée Fonseca-Mairena

Keywords: Marriage market with externalities; Incentives; Implementation.