Group incentive compatibility and welfare for matching with contracts

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Abstract

In the matching with contracts framework, under the assumption that each hospital has a choice function that satisfies the observable substitutability condition, we show that the strategy-proof cumulative offer mechanism is no longer guaranteed to be group strategy-proof, yet it nevertheless outputs a weakly Pareto efficient outcome for any input. We also discuss why, unlike the previous observations in the literature, the equivalence of strategy-proofness and group strategy-proofness does not carry over to our context.

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