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Interviewing in Two-Sided Matching Markets

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Robin S. Lee
Michael Schwarz

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Abstract

We introduce the interview assignment problem, which generalizes the one-to-one matching model of Gale and Shapley (1962) by introducing a stage of costly information acquisition. Agents may learn preferences over partners via costly interviews. Although there exist multiple equilibria where all agents receive the same number of interviews, efficiency depends on overlap -- the number of common interview partners among agents. We prove the equilibria with the highest degree of overlap yields the highest probability of being matched. The analysis suggests that institutions which ration interviews or create labor market segmentation may lead to greater efficiency in information acquisition activities.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14922.

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Date of creation: Apr 2009
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Handle: RePEc:nbr:nberwo:14922

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Find related papers by JEL classification:
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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  1. Heidrun C. Hoppe & Benny Moldovanu & Aner Sela, 2009. "The Theory of Assortative Matching Based on Costly Signals," Review of Economic Studies, Blackwell Publishing, vol. 76(1), pages 253-281, 01. [Downloadable!] (restricted)
  2. Burdett, Kenneth, 1996. "Truncated means and variances," Economics Letters, Elsevier, vol. 52(3), pages 263-267, September. [Downloadable!] (restricted)
  3. Echenique, Federico & Oviedo, Jorge, 2006. "A theory of stability in many-to-many matching markets," Theoretical Economics, Society for Economic Theory, vol. 1(2), pages 233-273, June. [Downloadable!]
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  4. Rachel E. Kranton & Deborah F. Minehart, 2000. "Networks versus Vertical Integration," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 570-601, Autumn.
  5. Alp E. Atakan, 2006. "Assortative Matching with Explicit Search Costs," Econometrica, Econometric Society, vol. 74(3), pages 667-680, 05. [Downloadable!] (restricted)
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  6. Paul Schweinzer, 2008. "Labour market recruiting with intermediaries," Review of Economic Design, Springer, vol. 12(2), pages 119-127, June. [Downloadable!] (restricted)
  7. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December. [Downloadable!] (restricted)
  8. Haeinger, Guillaume & Wooders, Myrna, 2003. "Decentralized Job Matching," The Warwick Economics Research Paper Series (TWERPS) 688, University of Warwick, Department of Economics. [Downloadable!]
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  9. Hector Chade & Lones Smith, 2006. "Simultaneous Search," Cowles Foundation Discussion Papers 1556, Cowles Foundation, Yale University. [Downloadable!]
    Other versions:
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