Welfare and stability in senior matching markets (Q2482669)

Senior matching markets are considered, where workers are assigned to firms at an unstable matching -- the status-quo -- which might not be Pareto efficient. It might also be that none of the matchings Pareto superior to the status-quo are Core stable. Two weakenings of Core stability are proposed: status-quo stability and weakened stability, and the respective mechanisms which lead any status-quo to matchings meeting the above-mentioned stability requirements. The first one is inspired by the Top trading cycle and Deferred Acceptance procedures, the other one belongs to the family of Branch and Bound algorithms. The last procedure finds a core stable matching in many-to-one markets whenever it exists, dispensing with the assumption of substitutability.