“Implementation of Assortative Matching Under Incomplete Information”

This paper provides a unifying framework for matching markets with incomplete information, when the positive assortative match is the unique efficient stable match. I construct a VCG-like mechanism which implements assortative matching as an ex post Nash equilibrium. It achieves this result using a payment rule that distinguishes between an agent deprived of any match and an agent who merely receives a less desirable match. The constructed mechanism recognizes only opportunity costs arising from the former, and not the latter, effect. I also generalize the stronger condition of envy freeness to these incomplete information environments and show that the constructed equilibrium is envy free. WORK IN PROGRESS “A VCG-like Auction for a Class of Interdependent Value Environments ” (with Lawrenc