An impossibility theorem for matching problems

This paper studies the possibility of strategy-proof rules yielding satisfactory solutions to matching problems. Alcalde and Barberá (Econ Theory 4:417–435, 1994) and Sönmez (Econ Des 1:365–380, 1994) show that efficient and individually rational matching rules are manipulable. We pursue the possibility of strategy-proof matching rules by relaxing efficiency to the weaker condition of respect for unanimity. First, we prove that a strategy-proof rule exists that is individually rational and respects unanimity. However, this rule is unreasonable in the sense that mutually best pairs of agents are matched on only rare occasions. In order to explore the possibility of better matching rules, we introduce a natural condition of “respect for 2-unanimity.” Respect for 2-unanimity states that a mutually best pair of agents should be matched, and an agent wishing to being unmatched should be unmatched. Our second result is negative. Secondly, we prove that no strategy-proof rule exists that respects 2-unanimity. This result implies Roth (Math Oper Res 7:617–628, 1962; J Econ Theory 36:277–288, 1985) showing that stable rules are manipulable.