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Transparent matching mechanisms

Author

Listed:
  • Möller, Markus

    (Department of Economics, University of Bonn)

Abstract

In the standard one-to-one agent-object matching model, I consider a central matching authority that publicly announces a strategy-proof mechanism and then initiates a matching. Following Akbarpour and Li (2020), the authority's commitment to the announced mechanism is limited to mechanisms rendering participants' observations indistinguishable from it. I call an announced mechanism transparent. if any deviation from it would be detected. The main findings identify trade-offs regarding transparency and other desirable properties: under stability or efficiency, strategy-proof mechanisms are transparent if and only if they are dictatorial. At the same time, the agent-proposing Deferred Acceptance (DA) mechanism is equivalent to committing to stability, while efficient mechanisms often fail to commit to efficiency. This transparency trade-off between stability and efficiency persists when strategy-proofness is guaranteed.

Suggested Citation

  • Möller, Markus, 0. "Transparent matching mechanisms," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:5492
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Transparency; partial commitment; matching; stability; efficiency; strategy-proof;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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