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Decentralized Matching with Aligned Preferences

Author

Listed:
  • Muriel Niederle

    (Stanford University)

  • Leeat Yariv

    (Caltech)

Abstract

We study a simple model of a decentralized market game in which firms make directed offers to workers. We focus on markets in which agents have aligned preferences. When agents have complete information or when there are no frictions in the economy, there exists an equilibrium that yields the stable match. In the presence of market frictions and preference uncertainty, harsher assumptions on the richness of the economy have to be made in order for decentralized markets to generate stable outcomes in equilibrium.

Suggested Citation

  • Muriel Niederle & Leeat Yariv, 2009. "Decentralized Matching with Aligned Preferences," Working Papers 2009-3, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2009-3
    as

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    File URL: http://lyariv.mycpanel.princeton.edu//papers/DecMarOpenAligned.pdf
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    References listed on IDEAS

    as
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    11. Muriel Niederle & Alvin E. Roth, 2009. "Market Culture: How Rules Governing Exploding Offers Affect Market Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 1(2), pages 199-219, August.
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    Cited by:

    1. Peter Coles & John Cawley & Phillip B. Levine & Muriel Niederle & Alvin E. Roth & John J. Siegfried, 2010. "The Job Market for New Economists: A Market Design Perspective," Journal of Economic Perspectives, American Economic Association, vol. 24(4), pages 187-206, Fall.
    2. Wu, Qinggong, 2015. "A finite decentralized marriage market with bilateral search," Journal of Economic Theory, Elsevier, vol. 160(C), pages 216-242.
    3. Yenmez, M. Bumin, 2018. "A college admissions clearinghouse," Journal of Economic Theory, Elsevier, vol. 176(C), pages 859-885.
    4. Estelle Cantillon & Li Chen & Juan S. Pereyra, 2022. "Respecting priorities versus respecting preferences in school choice: When is there a trade-off?," Papers 2212.02881, arXiv.org, revised Jan 2024.
    5. Behnaz Bojd & Hema Yoganarasimhan, 2022. "Star-Cursed Lovers: Role of Popularity Information in Online Dating," Marketing Science, INFORMS, vol. 41(1), pages 73-92, January.
    6. Estelle Cantillon & Li Chen & Juan Sebastian Pereyra Barreiro, 2022. "Respecting priorities versus respecting preferences in school choice: When is there a trade-off ?," Working Papers ECARES 2022-39, ULB -- Universite Libre de Bruxelles.
    7. Yazıcı, Ayşe, 2022. "Decentralized matching at senior-level: Stability and incentives," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    8. Federico Echenique & Joseph Root & Fedor Sandomirskiy, 2024. "Stable matching as transportation," Papers 2402.13378, arXiv.org.
    9. Ayse Yazici, 2022. "Decentralized Matching at Senior-Level: Stability and Incentives," Working Papers 2022_01, Durham University Business School.
    10. Galichon, Alfred & Ghelfi, Octavia & Henry, Marc, 2023. "Stable and extremely unequal," Economics Letters, Elsevier, vol. 226(C).

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    More about this item

    Keywords

    Decentralized Matching; Stability; Market Design;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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