Hiring Procedures to Implement Stable Allocations

We implement the core correspondence in Subgame Perfect Equilibrium using a simple sequential mechanism in which firms propose a salary to each worker (in the first stage). Then, each worker accepts at most one proposal (second stage). Moreover, we show that, if agents`preference are additive, this mechanism implements in Subgame Perfect Equilibrium that firms`optimal correspondence when firms employ undominated strategies. Finally, we construct another simple sequential mechanism to implement workers`optimal correspondence when agents`preferences are additive