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Unequal Fields: How Agricultural Subsidies Are Reinforcing Income Gaps in Farming - by Imre Fertő Read more

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Dependency meets illiberalism: expansion of the EV battery sector in Central Europe - new study by Judit Ricz and Andrea Éltető in Post-Communist Economies Read more

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The Large Core of College Admission Markets: Theory and Evidence - new co-authored study by Péter Biró in The Review of Economics and Statistics Read more

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Accident-Induced Absence from Work and Wage Growth - new co-authored article by Anikó Bíró and Márta Bisztray in Journal of Labor Economics 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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