IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/doi10.1086-701358.html

Two-Sided Matching via Balanced Exchange

Author

Listed:
  • Umut Mert Dur
  • M. Utku Ünver

Abstract

We introduce a new matching model to mimic two-sided exchange programs such as tuition and worker exchanges, in which export-import balances are required for longevity of programs. These exchanges use decentralized markets, making it difficult to achieve this goal. We introduce the two-sided top trading cycles, the unique mechanism that is balanced-efficient, worker-strategy-proof, acceptable, individually rational, and respecting priority bylaws regarding worker eligibility. Moreover, it encourages exchange, because full participation induces a dominant-strategy equilibrium for firms. We extend it to dynamic settings permitting tolerable yearly imbalances and demonstrate that its regular and tolerable versions perform considerably better than models of current practice.

Suggested Citation

  • Umut Mert Dur & M. Utku Ünver, 2019. "Two-Sided Matching via Balanced Exchange," Journal of Political Economy, University of Chicago Press, vol. 127(3), pages 1156-1177.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/701358
    DOI: 10.1086/701358
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/701358
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/701358
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/701358?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yao Cheng & Jingsheng Yu & Ling Zheng, 2025. "Efficient Major Transition Exchange under Distributional and Dual Priority-respecting Constraints," Papers 2504.12727, arXiv.org, revised Sep 2025.
    2. Afacan, Mustafa Oğuz, 2022. "College admissions with tuition transfers," Games and Economic Behavior, Elsevier, vol. 132(C), pages 400-420.
    3. Bloch, Francis & Cantala, David & Gibaja, Damián, 2020. "Matching through institutions," Games and Economic Behavior, Elsevier, vol. 121(C), pages 204-231.
    4. Hafalir, Isa E. & Kojima, Fuhito & Yenmez, M. Bumin, 2025. "Market design with distributional objectives: Efficiency, incentives, and property rights," Journal of Economic Theory, Elsevier, vol. 230(C).
    5. Hafalir, Isa E. & Kojima, Fuhito & Yenmez, M. Bumin, 2022. "Interdistrict school choice: A theory of student assignment," Journal of Economic Theory, Elsevier, vol. 201(C).
    6. Julien Combe, 2023. "Reallocation with priorities and minimal envy mechanisms," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(2), pages 551-584, August.
    7. Afacan, Mustafa Oğuz & Hu, Gaoji & Li, Jiangtao, 2024. "Housing markets since Shapley and Scarf," Journal of Mathematical Economics, Elsevier, vol. 111(C).
    8. Biró, Péter & Klijn, Flip & Pápai, Szilvia, 2022. "Serial Rules in a Multi-Unit Shapley-Scarf Market," Games and Economic Behavior, Elsevier, vol. 136(C), pages 428-453.
    9. Péter Csóka & P. Jean-Jacques Herings, 2018. "Decentralized Clearing in Financial Networks," Management Science, INFORMS, vol. 64(10), pages 4681-4699, October.
    10. Afacan, Mustafa Oğuz, 2023. "A characterization of Top Trading Cycles under trading networks," Economics Letters, Elsevier, vol. 233(C).
    11. Combe, Julien & Schlegel, Jan Christoph, 2024. "Reallocation with priorities," Games and Economic Behavior, Elsevier, vol. 143(C), pages 287-299.

    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:doi:10.1086/701358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.