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Stability in Large Matching Markets with Complementarities

Author

Listed:
  • Itai Ashlagi

    () (Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02142)

  • Mark Braverman

    () (Computer Science, Princeton University, Princeton, New Jersey 08544)

  • Avinatan Hassidim

    () (Computer Science, Bar-Ilan University, Ramat Gan, 52900, Israel)

Abstract

Labor markets can often be viewed as many-to-one matching markets. It is well known that if complementarities are present in such markets, a stable matching may not exist. We study large random matching markets with couples. We introduce a new matching algorithm and show that if the number of couples grows slower than the size of the market, a stable matching will be found with high probability. If however, the number of couples grows at a linear rate, with constant probability (not depending on the market size), no stable matching exists. Our results explain data from the market for psychology interns.

Suggested Citation

  • Itai Ashlagi & Mark Braverman & Avinatan Hassidim, 2014. "Stability in Large Matching Markets with Complementarities," Operations Research, INFORMS, vol. 62(4), pages 713-732, August.
  • Handle: RePEc:inm:oropre:v:62:y:2014:i:4:p:713-732
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    File URL: http://dx.doi.org/10.1287/opre.2014.1276
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    References listed on IDEAS

    as
    1. Klaus, Bettina & Klijn, Flip, 2005. "Stable matchings and preferences of couples," Journal of Economic Theory, Elsevier, vol. 121(1), pages 75-106, March.
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    Cited by:

    1. repec:oup:oxford:v:33:y:2017:i:4:p:541-571. is not listed on IDEAS
    2. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press, vol. 33(4), pages 541-571.
    3. repec:eee:gamebe:v:115:y:2019:i:c:p:167-187 is not listed on IDEAS

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