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Decentralized job matching

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Abstract

This paper studies a decentralized job market model where firms (academic departments) propose sequentially a (unique) position to some workers (Ph.D. candidates). Successful candidates then decide whether to accept the offers, and departments whose positions remain unfilled propose to other candidates. We distinguish between several cases, depending on whether agents’ actions are simultaneous and/or irreversible (if a worker accepts an offer he is immediately matched, and both the worker and the firm to which she is matched go out of the market). For all these cases, we provide a complete characterization of the Nash equilibrium outcomes and the Subgame Perfect equilibria. While the set of Nash equilibria outcomes contain all individually rational matchings, it turns out that in most cases considered all subgame perfect equilibria yield a unique outcome, the worker-optimal matching.
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  • Guillaume Haeringer & Myrna Wooders, 2011. "Decentralized job matching," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(1), pages 1-28, February.
    • Handle: RePEc:spr:jogath:v:40:y:2011:i:1:p:1-28
    DOI: 10.1007/s00182-009-0218-x
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    Cited by:

    1. Comola, Margherita & Fafchamps, Marcel, 2018. "An experimental study on decentralized networked markets," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 567-591.
    2. 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.
    3. Antonio Romero-Medina & Matteo Triossi, 2023. "Take-it-or-leave-it contracts in many-to-many matching markets," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 591-623, February.
    4. Okada, Akira, 2021. "Stable matching and protocol-free equilibrium," Games and Economic Behavior, Elsevier, vol. 128(C), pages 193-201.
    5. Wu, Qinggong, 2015. "A finite decentralized marriage market with bilateral search," Journal of Economic Theory, Elsevier, vol. 160(C), pages 216-242.
    6. Alfredo Salgado-Torres, 2012. "A simple decentralized matching mechanism in markets with couples," Economics Bulletin, AccessEcon, vol. 32(3), pages 2044-2055.
    7. Somouaoga Bonkoungou, 2021. "Decentralized college admissions under single application," Review of Economic Design, Springer;Society for Economic Design, vol. 25(1), pages 65-91, June.
    8. Kushnir, Alexey, 2009. "Matching Markets with Signals," Sustainable Development Papers 50730, Fondazione Eni Enrico Mattei (FEEM).
    9. Joana Pais & Ágnes Pintér & Róbert F. Veszteg, 2020. "Decentralized matching markets with(out) frictions: a laboratory experiment," Experimental Economics, Springer;Economic Science Association, vol. 23(1), pages 212-239, March.
    10. Haeringer, Guillaume & Iehlé, Vincent, 2008. "Enjeux stratégiques du concours des Maîtres de Conférences," MPRA Paper 13002, University Library of Munich, Germany.
    11. José Correa & Jasper de Jong & Bart de Keijzer & Marc Uetz, 2019. "The Inefficiency of Nash and Subgame Perfect Equilibria for Network Routing," Management Science, INFORMS, vol. 44(4), pages 1286-1303, November.
    12. B. Evci, 2014. "A new dynamic mechanism to the marriage problem with a variant," Working Papers wp973, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Romero-Medina, Antonio & Triossi, Matteo, 2014. "Non-revelation mechanisms in many-to-one markets," Games and Economic Behavior, Elsevier, vol. 87(C), pages 624-630.
    14. Muriel Niederle & Leeat Yariv, 2009. "Decentralized Matching with Aligned Preferences," NBER Working Papers 14840, National Bureau of Economic Research, Inc.
    15. Horstschräer, Julia, 2012. "Decentralizing university admission: Evidence from a natural experiment," ZEW Discussion Papers 12-076, ZEW - Leibniz Centre for European Economic Research.
    16. André Veski & Kaire Põder, 2018. "Zero-intelligence agents looking for a job," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 13(3), pages 615-640, October.
    17. Salgado Alfredo, 2018. "Incomplete Information and Costly Signaling in College Admissions," Working Papers 2018-23, Banco de México.
    18. Triossi, Matteo, 2009. "Hiring mechanisms, application costs and stability," Games and Economic Behavior, Elsevier, vol. 66(1), pages 566-575, May.
    19. Alcalde, José, 2018. "Beyond the Spanish MIR with consent: (Hidden) cooperation and coordination in matching," Games and Economic Behavior, Elsevier, vol. 110(C), pages 32-49.
    20. Pais, Joana, 2008. "Incentives in decentralized random matching markets," Games and Economic Behavior, Elsevier, vol. 64(2), pages 632-649, November.
    21. Diamantoudi, Effrosyni & Miyagawa, Eiichi & Xue, Licun, 2015. "Decentralized matching: The role of commitment," Games and Economic Behavior, Elsevier, vol. 92(C), pages 1-17.
    22. Yazıcı, Ayşe, 2022. "Decentralized matching at senior-level: Stability and incentives," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    23. Yasushi Kawase & Keisuke Bando, 2021. "Subgame perfect equilibria under the deferred acceptance algorithm," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(2), pages 503-546, June.
    24. Ayse Yazici, 2022. "Decentralized Matching at Senior-Level: Stability and Incentives," Working Papers 2022_01, Durham University Business School.
    25. Heinrich H. Nax & Bary S. R. Pradelski, 2016. "Core Stability and Core Selection in a Decentralized Labor Matching Market," Games, MDPI, vol. 7(2), pages 1-16, March.

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    More about this item

    Keywords

    Two-sided matching; Job market; Subgame perfect equilibrium; Commitment; C78; C62; J41;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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