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A Field Study on Matching with Network Externalities

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  • Alistair Wilson
  • Mariagiovanna Baccara
  • Ayse Imrohoroglu
  • Leeat Yariv

Abstract

We study the effects of network externalities on a unique matching protocol for faculty in a large U.S. professional school to offices in a new building. We collected institutional, web, and survey data on faculty`s attributes and choices. We first identify the different layers of the social network: institutional affiliation, coauthorships, and friendships. We demonstrate and quantify the effects of network externalities on choices and outcomes. Furthermore, we disentangle the different layers of the social network and quantify their relative impact. Finally, we assess the matching protocol from a welfare perspective. Our study suggests the importance and feasibility of accounting for network externalities in general assignment problems and evaluates a set of techniques that can be employed to this end.

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Bibliographic Info

Paper provided by University of Pittsburgh, Department of Economics in its series Working Papers with number 486.

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Date of creation: Sep 2009
Date of revision: Sep 2011
Publication status: Forthcoming in the American Economic Review
Handle: RePEc:pit:wpaper:486

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Keywords: Matching; Social Networks; Externalities;

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References

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  1. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth & Tayfun Sönmez, 2006. "Changing the Boston School Choice Mechanism," Boston College Working Papers in Economics 639, Boston College Department of Economics.
  2. Budish, Eric & Cantillon, Estelle, 2010. "The Multi-unit Assignment Problem: Theory and Evidence from Course Allocation at Harvard," CEPR Discussion Papers 7641, C.E.P.R. Discussion Papers.
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  14. Loiola, Eliane Maria & de Abreu, Nair Maria Maia & Boaventura-Netto, Paulo Oswaldo & Hahn, Peter & Querido, Tania, 2007. "A survey for the quadratic assignment problem," European Journal of Operational Research, Elsevier, Elsevier, vol. 176(2), pages 657-690, January.
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Cited by:
  1. Carrillo, Juan D & Singhal, Saurabh, 2011. "Tiered Housing Allocation: an Experimental Analysis," CEPR Discussion Papers 8255, C.E.P.R. Discussion Papers.
  2. Juan D Carrillo & Saurabh Singhal, 2011. "Tiered Housing Allocation: an Experimental Analysis," Working Paper 8511, USC Lusk Center for Real Estate.

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  1. A Field Study on Matching with Network Externalities (AER 2012) in ReplicationWiki

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