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The matching process and the implications of the competitive market system

Author

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  • Lacatus Maria Liana

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Grigore George-Eduard

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

In the broad field of economic research, the process of resource allocation and the degree of manifestation of the freedom of the competitive market are relevant points of interest in order to achieve in terms of microeconomic performance. Through this work, we have proposed to investigate the extent to which competitive markets tend towards that form of perfection and what are the main challenges and implications for the market freedom. The novelty of this study counts in bringing to the forefront the match-making process, implicitly the study of the match-making market, introduced by the American economist Alvin E. Roth in 2015. In particular, it analyzes a new valence of the competitive market, the operating mechanism being aimed at highlighting a specific terminology, such as linguistic decryption of markets. This paper has extended the concept of matching, by analyzing the ethical issues involved, as well as the way in which we are witnessing a crescendo of concrete examples of the functioning of these markets. At the same time, we used the use of methodological tools specific to the analysis of statistical data on measuring the degree of competitive freedom in the main key sectors in Romania in 2015 and 2019, by applying The Aggregate Index of Competitive Pressure (AICP). The results showed the degree of openness to competition of the main sectors in Romania, as well as the fact that the matching market assumes the effective operation and manifestation of the competitive mechanism.

Suggested Citation

  • Lacatus Maria Liana & Grigore George-Eduard, 2021. "The matching process and the implications of the competitive market system," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 15(1), pages 139-149, December.
    • Handle: RePEc:vrs:poicbe:v:15:y:2021:i:1:p:139-149:n:27
    DOI: 10.2478/picbe-2021-0014
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    References listed on IDEAS

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