What price stability? Social welfare in matching markets
In two-sided matching markets, stability can be costly. We define social welfare functions for matching markets and use them to formulate a definition of the price of stability. We then show that it is common to find a price tag attached to stability, and that the price of stability can be substantial. Therefore, when choosing a matching mechanism, a social planner would be well advised to weigh the price of stability against the value of stability, which varies from market to market.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Klaus, Bettina & Klijn, Flip, 2008.
"Smith and Rawls Share a Room: Stability and Medians,"
009, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Bettina Klaus & Flip Klijn, 2010. "Smith and Rawls share a room: stability and medians," Social Choice and Welfare, Springer, vol. 35(4), pages 647-667, October.
- Bettina Klaus & Flip Klijn, 2009. "Smith and Rawls Share a Room: Stability and Medians," Harvard Business School Working Papers 09-111, Harvard Business School.
- Smith, John H, 1973. "Aggregation of Preferences with Variable Electorate," Econometrica, Econometric Society, vol. 41(6), pages 1027-41, November.
- Balinski, Michel & Sonmez, Tayfun, 1999. "A Tale of Two Mechanisms: Student Placement," Journal of Economic Theory, Elsevier, vol. 84(1), pages 73-94, January.
- Antonio Romero-Medina, 2005. "Equitable Selection in Bilateral Matching Markets," Theory and Decision, Springer, vol. 58(3), pages 305-324, 05.
- Halaburda, Hanna, 2010.
"Unravelling in two-sided matching markets and similarity of preferences,"
Games and Economic Behavior,
Elsevier, vol. 69(2), pages 365-393, July.
- Hanna W. Halaburda, 2008. "Unravelling in Two-Sided Matching Markets and Similarity of Preferences," Harvard Business School Working Papers 09-068, Harvard Business School.
- James W. Boudreau & Vicki Knoblauch, 2010.
"Marriage Matching and Intercorrelation of Preferences,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 12(3), pages 587-602, 06.
- James W. Boudreau & Vicki Knoblauch, 2008. "Marriage Matching and Intercorrelation of Preferences," Working papers 2008-27, University of Connecticut, Department of Economics.
- M. Utku Ünver, 2001.
"On the Survival of Some Unstable Two-Sided Matching Mechanisms,"
0111001, EconWPA, revised 01 Nov 2003.
- M. Utku Ünver, 2005. "On the survival of some unstable two-sided matching mechanisms," International Journal of Game Theory, Springer, vol. 33(2), pages 239-254, 06.
- Jeremy Bulow & Jonathan Levin, 2005.
"Matching and Price Competition,"
NBER Working Papers
11506, National Bureau of Economic Research, Inc.
- Bulow, Jeremy I. & Levin, Jonathan, 2003. "Matching and Price Competition," Research Papers 1818, Stanford University, Graduate School of Business.
- Jonathan Levin & Jeremy Bulow, 2004. "Matching and Price Competition," Econometric Society 2004 North American Winter Meetings 350, Econometric Society.
- Bettina Klaus & Flip Klijn, 2004.
"Fair and Efficient Student Placement with Couples,"
UFAE and IAE Working Papers
616.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 01 Mar 2006.
- M. Utku �nver, 1999.
"Backward Unraveling over Time: The Evolution of Strategic Behavior in the Entry-Level British Medical Labor Markets,"
Computing in Economics and Finance 1999
1132, Society for Computational Economics.
- Unver, M. Utku, 2001. "Backward unraveling over time: The evolution of strategic behavior in the entry level British medical labor markets," Journal of Economic Dynamics and Control, Elsevier, vol. 25(6-7), pages 1039-1080, June.
- M. Utku Unver, 1999. "Backward Unraveling over Time: The Evolution of Strategic Behavior in the Entry-Level British Medical Labor Markets," Game Theory and Information 9907001, EconWPA, revised 16 Jul 1999.
- Bettina Klaus & Flip Klijn, 2004.
"Median Stable Matching for College Admission,"
165, Barcelona Graduate School of Economics.
- Onur Kesten, 2010. "School Choice with Consent," The Quarterly Journal of Economics, MIT Press, vol. 125(3), pages 1297-1348, August.
- Klaus, Bettina, 2009.
""Fair marriages": An impossibility,"
Elsevier, vol. 105(1), pages 74-75, October.
- James Boudreau & Vicki Knoblauch, 2013. "Preferences and the price of stability in matching markets," Theory and Decision, Springer, vol. 74(4), pages 565-589, April.
- Antonio Romero-Medina, 2001. "`Sex-Equal' Stable Matchings," Theory and Decision, Springer, vol. 50(3), pages 197-212, May.
When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:67:y:2014:i:c:p:27-33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.