1 Consider a matching market with three buyers(x, y, z) and three sellers (a, b, c). Among buyers,the valuations for sellers (a, b, c) are (1, 3, 10) forX, (1, 4, 6) for y, and (5, 6, 7) for z. 1.1. Show step-by-step matching process, thecorresponding preferred-seller graph at eachstep, and finally a set of market-clearing prices.2. Is it possible to have multiple constricted setsin a step? Will the selection order of constrictedsets matter in the final outcome? Briefly explainyour conclusions.

Answered: Consider a matching market with three…

Consider a matching market with three buyers (x, y, z) and three sellers (a, b, c). Among buyers, the valuations for sellers (a, b, c) are (1, 3, 10) for x, (1, 4, 6) for y, and (5, 6, 7) for z. 1.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.7P

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