We consider multiple-type housing market problems as introduced by Moulin (1995) and study the relationship between strict strong Nash equilibria and the strict core (two solution concepts that are defined in terms of the absence of weak blocking coalitions). We prove that for lexicographically separable preferences, the set of all strict strong Nash equilibrium outcomes of each preference revelation game that is induced by a strictly core stable mechanism is a subset of the strict core, but not vice versa, that is, there are strict core allocations that cannot be implemented in strict strong Nash equilibrium. This result is extended to a more general set of preference domains that satisfy strict core non-emptiness and a minimal preference domain richness assumption.
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Dongbei Univ Finance & Econ, Dept Finance, Jianshan Jie 217, Dalian 116025, Peoples R ChinaDongbei Univ Finance & Econ, Dept Finance, Jianshan Jie 217, Dalian 116025, Peoples R China
Feng, Di
Klaus, Bettina
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Univ Lausanne, Fac Business & Econ, CH-1015 Lausanne, SwitzerlandDongbei Univ Finance & Econ, Dept Finance, Jianshan Jie 217, Dalian 116025, Peoples R China
Klaus, Bettina
Klijn, Flip
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CSIC, Inst Econ Anal, Campus UAB, Bellaterra 08193, Barcelona, Spain
Barcelona Sch Econ, Campus UAB, Bellaterra 08193, Barcelona, SpainDongbei Univ Finance & Econ, Dept Finance, Jianshan Jie 217, Dalian 116025, Peoples R China