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The Governance and Development Policy Dimensions of the Success of Rural Proofing - new research article by István Finta in European Countryside Read more

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When Ethical Meets Entrepreneurial: How SME Leaders in Resource-Constrained Economies Can Build Sustainable Competitive Advantage - by Szilárd Podruzsik Read more

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Why Sri Lanka’s smallholder rice farmers hold the key to sustainable water management - by Imre Fertő Read more

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Paradiplomacy in Hungary: A New Research Topic? - book chapter by Balázs Brucker and Zsuzsanna Zsibók Read more

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KTI Seminar: Christopher Stapenhurst – Randomized Deferred Acceptance and Possibility Based Strategy Proofness

The presentation will take place in a hybrid format via zoom interface or in person in the room K.0.11-12 on 29.05.2025, from 13.00.

Speaker: Christopher Stapenhurst (BME)

Title: Randomized Deferred Acceptance and Possibility Based Strategy Proofness
(joint work with József Pínter and Regina Stangl)

Abstract:

The deferred acceptance (DA) algorithm is known to be strategy-proof only for the proposing side in two-sided matching, with no deterministic and stable mechanism achieving strategy-proofness for both sides. We propose a randomized variant of DA—where man-proposing and woman-proposing DA are selected with equal probability—and show that it achieves strategy-proofness when agents evaluate lotteries over matchings optimistically (i.e., focusing on their best possible realization). To generalize this insight, we introduce possibility-based strategy-proofness (PBSP), a new incentive concept requiring that no agent can misreport preferences to make a strictly better matching possible in the lottery. We prove that random DA satisfies PBSP, offering a viable path to incentive-compatible stable matching without restricting to deterministic mechanisms. Our results demonstrate how stochasticity, combined with ordinal evaluations, can circumvent classic impossibility theorems.

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