Manipulation via Capacities in Two-Sided Matching Markets
Abstract We study manipulation of solutions by hospitals via underreporting their capacities in the context of centralized two-sided matching markets. We show that the solution that is used to match medical interns and hospitals in United States is manipulable in this way. Our main result is that there is no solution that isstableandnon-manipulable via capacities. Journal of Economic LiteratureClassification Numbers: C71, C78, D71 D78.