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Stability in Repeated Matching Markets

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  • Ce Liu

Abstract

This paper develops a framework for repeated matching markets. The model departs from the Gale-Shapley matching model by having a fixed set of long-lived hospitals match with a new generation of short-lived residents in every period. I show that there are two kinds of hospitals in this repeated environment: some hospitals can be motivated dynamically to voluntarily reduce their hiring capacity, potentially making more residents available to rural hospitals; the others, however, are untouchable even with repeated interaction and must obtain the same match as they do in a static matching. In large matching markets with correlated preferences, at most a vanishingly small fraction of the hospitals are untouchable. The vast majority of hospitals can be motivated using dynamic incentives.

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  • Ce Liu, 2020. "Stability in Repeated Matching Markets," Papers 2007.03794, arXiv.org, revised Mar 2021.
    • Handle: RePEc:arx:papers:2007.03794
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    References listed on IDEAS

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