Aytek Erdil

• See a review of this paper at https://nickarnosti.com/blog/matchingwithcontracts/

• Abstract: Firms typically evaluate workers based on their attributes rather than their names, and treat workers with similar attributes similarly. We formalize these natural features through a new property we call density, and recast the classical model of matching with contracts so that in any problem, the set of workers is a finite draw from a rich attribute space. Dense preferences are common in applications and easy to verify. In this environment, simple preference conditions previously known to be necessary but not sufficient become sufficient to guarantee the existence of stable allocations and stable, strategy-proof mechanisms. Thus, attribute-based modelling clarifies which preference restrictions support stable and strategy-proof design, and offers a new lens for revisiting existing matching-with contracts results. 

• When preferences satisfy our mild density condition, we obtain two characterizations:

• The paper is available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7077278 

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