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A Field Study on Matching with Network Externalities

Author

Listed:
  • Mariagiovanna Baccara
  • Ayse Imrohoroglu
  • Alistair J. Wilson
  • Leeat Yariv

Abstract

We study the effects of network externalities within a protocol for matching faculty to offices in a new building. Using web and survey data on faculty's attributes and choices, we identify the different layers of the social network: institutional affiliation, coauthorships, and friendships. We quantify the effects of network externalities on choices and outcomes, disentangle the layers of the networks, and quantify their relative influence. Finally, we assess the protocol used from a welfare perspective. Our study suggests the importance and feasibility of accounting for network externalities in assignment problems and evaluates techniques that can be employed to this end. (JEL C78, C93, D62, D85, Z13)

Suggested Citation

  • Mariagiovanna Baccara & Ayse Imrohoroglu & Alistair J. Wilson & Leeat Yariv, 2012. "A Field Study on Matching with Network Externalities," American Economic Review, American Economic Association, vol. 102(5), pages 1773-1804, August.
  • Handle: RePEc:aea:aecrev:v:102:y:2012:i:5:p:1773-1804
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Fisher, James C.D. & Hafalir, Isa E., 2016. "Matching with aggregate externalities," Mathematical Social Sciences, Elsevier, vol. 81(C), pages 1-7.
    2. Bo Chen, 2013. "Assignment Games with Externalities And Matching-Based Competition," Bonn Econ Discussion Papers bgse08_2013, University of Bonn, Germany.
    3. Jeremy T. Fox, 2008. "Estimating Matching Games with Transfers," NBER Working Papers 14382, National Bureau of Economic Research, Inc.
    4. Juan D Carrillo & Saurabh Singhal, 2011. "Tiered Housing Allocation: an Experimental Analysis," Working Paper 8511, USC Lusk Center for Real Estate.
    5. repec:eee:ijrema:v:33:y:2016:i:2:p:409-427 is not listed on IDEAS
    6. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Denisa Mindruta & Mahka Moeen & Rajshree Agarwal, 2016. "A two-sided matching approach for partner selection and assessing complementarities in partners' attributes in inter-firm alliances," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 206-231, January.

    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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