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Imperfect competition in two-sided matching markets

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  • Azevedo, Eduardo M.

Abstract

This paper considers a simple equilibrium model of an imperfectly competitive two-sided matching market. Firms and workers may have heterogeneous preferences over matches on the other side, and the model allows for both uniform and personalized wages or contracts. To make the model tractable, I use the Azevedo and Leshno (2013) framework, in which a finite number of firms is matched to a continuum of workers.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 83 (2014)
Issue (Month): C ()
Pages: 207-223

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Handle: RePEc:eee:gamebe:v:83:y:2014:i:c:p:207-223

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Web page: http://www.elsevier.com/locate/inca/622836

Related research

Keywords: Matching markets; Imperfect competition;

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References

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  1. Jeremy Bulow & Jonathan Levin, 2005. "Matching and Price Competition," NBER Working Papers 11506, National Bureau of Economic Research, Inc.
  2. Hideo Konishi & M. Ünver, 2006. "Games of Capacity Manipulation in Hospital-intern Markets," Social Choice and Welfare, Springer, vol. 27(1), pages 3-24, August.
  3. Fuhito Kojima, 2006. "Mixed Strategies in Games of Capacity Manipulation in Hospital–Intern Markets," Social Choice and Welfare, Springer, vol. 27(1), pages 25-28, August.
  4. Xavier Gabaix & Augustin Landier, 2006. "Why Has CEO Pay Increased So Much?," 2006 Meeting Papers 518, Society for Economic Dynamics.
  5. Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
  6. Alvin E. Roth & Elliott Peranson, 1999. "The Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design," NBER Working Papers 6963, National Bureau of Economic Research, Inc.
  7. George J. Mailath & Andrew Postlewaite & Larry Samuelson, 2011. "Pricing and Investments in Matching Markets," Cowles Foundation Discussion Papers 1810, Cowles Foundation for Research in Economics, Yale University.
  8. Paul Milgrom, 2003. "Matching with Contracts," Working Papers 03003, Stanford University, Department of Economics.
  9. Sonmez, Tayfun, 1997. "Manipulation via Capacities in Two-Sided Matching Markets," Journal of Economic Theory, Elsevier, vol. 77(1), pages 197-204, November.
  10. ROBERTS, John, . "On the existence of Cournot equilibrium without concave profit functions," CORE Discussion Papers RP -260, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Ayse Mumcu & Ismail Saglam, 2008. "Games of Capacity Allocation in Many-to-One Matching with an Aftermarket," Working Papers 0802, TOBB University of Economics and Technology, Department of Economics.
  12. Abdulkadiroglu, Atila & Pathak, Parag Abishek & Roth, Alvin E., 2009. "Strategy-Proofness Versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match," Scholarly Articles 11077572, Harvard University Department of Economics.
  13. Ehlers, Lars, 2010. "Manipulation via capacities revisited," Games and Economic Behavior, Elsevier, vol. 69(2), pages 302-311, July.
  14. Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
  15. Roth, Alvin E., 1985. "The college admissions problem is not equivalent to the marriage problem," Journal of Economic Theory, Elsevier, vol. 36(2), pages 277-288, August.
  16. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
  17. Morten Sørensen, 2007. "How Smart Is Smart Money? A Two-Sided Matching Model of Venture Capital," Journal of Finance, American Finance Association, vol. 62(6), pages 2725-2762, December.
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Cited by:
  1. Kohei Kawamura (University of Edinburgh) and Jozsef Sakovics(University of Edinburgh), 2013. "Partial Equal Treatment in Wage Offers," ESE Discussion Papers 215, Edinburgh School of Economics, University of Edinburgh.
  2. Alvin E. Roth, 2010. "Marketplace Institutions Related to the Timing of Transactions," NBER Working Papers 16556, National Bureau of Economic Research, Inc.
  3. Kohei Kawamura (University of Edinburgh) and Jozsef Sakovics (University of Edinburgh), 2013. "Spillovers of Equal Treatment in Wage Offers," ESE Discussion Papers 221, Edinburgh School of Economics, University of Edinburgh.

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