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Two-sided matching with interdependent values

Author

Listed:
  • Chakraborty, Archishman
  • Citanna, Alessandro
  • Ostrovsky, Michael

Abstract

We introduce and study two-sided matching with incomplete information and interdependent valuations on one side of the market. An example of such a setting is a matching market between colleges and students in which colleges receive partially informative signals about students. Stability in such markets depends on the amount of information about matchings available to colleges. When colleges observe the entire matching, a stable matching mechanism does not generally exist. When colleges observe only their own matches, a stable mechanism exists if students have identical preferences over colleges, but may not exist if students have different preferences.

Suggested Citation

  • Chakraborty, Archishman & Citanna, Alessandro & Ostrovsky, Michael, 2010. "Two-sided matching with interdependent values," Journal of Economic Theory, Elsevier, vol. 145(1), pages 85-105, January.
  • Handle: RePEc:eee:jetheo:v:145:y:2010:i:1:p:85-105
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    References listed on IDEAS

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    1. Forges Francoise, 1994. "Posterior Efficiency," Games and Economic Behavior, Elsevier, vol. 6(2), pages 238-261, March.
    2. Heidrun C. Hoppe & Benny Moldovanu & Aner Sela, 2009. "The Theory of Assortative Matching Based on Costly Signals," Review of Economic Studies, Oxford University Press, vol. 76(1), pages 253-281.
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    7. Chade, Hector, 2006. "Matching with noise and the acceptance curse," Journal of Economic Theory, Elsevier, vol. 129(1), pages 81-113, July.
    8. Robert J Aumann, 1999. "Agreeing to Disagree," Levine's Working Paper Archive 512, David K. Levine.
    9. Crawford, Vincent P., 1991. "Comparative statics in matching markets," Journal of Economic Theory, Elsevier, vol. 54(2), pages 389-400, August.
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    Citations

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    Cited by:

    1. Oğuz Afacan, Mustafa, 2012. "Group robust stability in matching markets," Games and Economic Behavior, Elsevier, vol. 74(1), pages 394-398.
    2. Archishman Chakraborty & Alessandro Citanna & Michael Ostrovsky, 2015. "Group stability in matching with interdependent values," Review of Economic Design, Springer;Society for Economic Design, vol. 19(1), pages 3-24, March.
    3. Robin S. Lee & Michael Schwarz, 2017. "Interviewing in two-sided matching markets," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 835-855, August.
    4. M. Bumin Yenmez, 2013. "Incentive-Compatible Matching Mechanisms: Consistency with Various Stability Notions," American Economic Journal: Microeconomics, American Economic Association, vol. 5(4), pages 120-141, November.
    5. Josephson, Jens & Shapiro, Joel, 2008. "Interviews and Adverse Selection," CEPR Discussion Papers 6837, C.E.P.R. Discussion Papers.
    6. Lee, Sam-Ho, 2009. "A theory of self-selection in a market with matching frictions: An application to delay in refereeing times in economics journals," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 344-360, October.
    7. Che, Yeon-Koo & Kim, Jinwoo & Kojima, Fuhito, 2015. "Efficient assignment with interdependent values," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 54-86.
    8. Qingmin Liu & George J. Mailath & Andrew Postlewaite & Larry Samuelson, 2012. "Matching with Incomplete Information," PIER Working Paper Archive 12-032, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    9. Ehlers, Lars & Massó, Jordi, 2015. "Matching markets under (in)complete information," Journal of Economic Theory, Elsevier, vol. 157(C), pages 295-314.
    10. Dizdar, Deniz & Moldovanu, Benny, 2016. "On the importance of uniform sharing rules for efficient matching," Journal of Economic Theory, Elsevier, vol. 165(C), pages 106-123.
    11. Bilancini, Ennio & Boncinelli, Leonardo, 2013. "Disclosure of information in matching markets with non-transferable utility," Games and Economic Behavior, Elsevier, vol. 82(C), pages 143-156.
    12. Bikhchandani, Sushil, 2017. "Stability with one-sided incomplete information," Journal of Economic Theory, Elsevier, vol. 168(C), pages 372-399.
    13. Antonio Nicolò & Carmelo Rodríguez-Álvarez, 2013. "Incentive compatibility and feasibility constraints in housing markets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 625-635, September.
    14. Alexander Karpov, 2017. "Preference Diversity Orderings," Group Decision and Negotiation, Springer, vol. 26(4), pages 753-774, July.
    15. repec:spr:jogath:v:46:y:2017:i:1:d:10.1007_s00182-015-0519-1 is not listed on IDEAS
    16. Qingmin Liu & George J. Mailath & Andrew Postlewaite & Larry Samuelson, 2010. "Stable Matching with Incomplete Information, Second Version," PIER Working Paper Archive 12-042, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 28 Oct 2012.
    17. Pereyra, Juan Sebastián, 2013. "A dynamic school choice model," Games and Economic Behavior, Elsevier, vol. 80(C), pages 100-114.
    18. repec:aea:jeclit:v:55:y:2017:i:2:p:493-544 is not listed on IDEAS
    19. Kojima, Fuhito, 2011. "Robust stability in matching markets," Theoretical Economics, Econometric Society, vol. 6(2), May.
    20. Gallemore, Caleb & Jespersen, Kristjan, 2016. "Transnational Markets for Sustainable Development Governance: The Case of REDD+," World Development, Elsevier, vol. 86(C), pages 79-94.
    21. Ely, Jeffrey C. & Siegel, Ron, 2013. "Adverse selection and unraveling in common-value labor markets," Theoretical Economics, Econometric Society, vol. 8(3), September.

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