IDEAS home Printed from https://ideas.repec.org/p/ags/aaea16/235482.html
   My bibliography  Save this paper

Envious Preferences in Two-sided Matching

Author

Listed:
  • Ahamad, Mazbahul

Abstract

We develop a model of two-sided matching problem with individual-sided envious preferences that originate from an emulative envy effect in which a more desirable state that is preferred is owned by the other individual. We assume envious preferences influence an individual’s decision to enter into a two-sided network instead of being unassigned. In this paper, we show that an individual-sided envious preference leads to a stable matching under a two-sided market framework. Applying the mechanism of the model to behavioral contract theory, we show that individual-proposing envious acceptance leads to stable farmer-buyer contract matching considering buyer’s time invariant preference. We further argue that individual’s envious preference also contributes to herd-type acceptance that dominates individual’s logical preferences in participation decision under a less risky environment.

Suggested Citation

  • Ahamad, Mazbahul, 2016. "Envious Preferences in Two-sided Matching," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235482, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235482
    DOI: 10.22004/ag.econ.235482
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/235482/files/2016%20AAEA_ID_%20P8943_Envious%20Preferences%20in%20Two-sided%20Matching.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.235482?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
    ---><---

    References listed on IDEAS

    as
    1. Alcalde-Unzu, Jorge & Molis, Elena, 2011. "Exchange of indivisible goods and indifferences: The Top Trading Absorbing Sets mechanisms," Games and Economic Behavior, Elsevier, vol. 73(1), pages 1-16, September.
    2. Patrick Bolton & Mathias Dewatripont, 2005. "Contract Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025760, December.
    3. Varian, Hal R., 1974. "Equity, envy, and efficiency," Journal of Economic Theory, Elsevier, vol. 9(1), pages 63-91, September.
    4. Boris Gershman, 2014. "The two sides of envy," Journal of Economic Growth, Springer, vol. 19(4), pages 407-438, December.
    5. Aytek Erdil & Haluk Ergin, 2008. "What's the Matter with Tie-Breaking? Improving Efficiency in School Choice," American Economic Review, American Economic Association, vol. 98(3), pages 669-689, June.
    6. Roth, Alvin E. & Sotomayor, Marilda, 1988. "Interior points in the core of two-sided matching markets," Journal of Economic Theory, Elsevier, vol. 45(1), pages 85-101, June.
    7. Yair Antler, 2015. "Two-Sided Matching with Endogenous Preferences," American Economic Journal: Microeconomics, American Economic Association, vol. 7(3), pages 241-258, August.
    8. Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
    9. Zizzo, Daniel John, 2003. "Money burning and rank egalitarianism with random dictators," Economics Letters, Elsevier, vol. 81(2), pages 263-266, November.
    10. Guillaume Haeringer & Vincent Iehlé, 2014. "Two-sided matching with one-sided preferences," Working Papers halshs-00980794, HAL.
    11. Roth, Alvin E & Sotomayor, Marilda, 1989. "The College Admissions Problem Revisited," Econometrica, Econometric Society, vol. 57(3), pages 559-570, May.
    12. Anna Bogomolnaia & Herve Moulin, 2004. "Random Matching Under Dichotomous Preferences," Econometrica, Econometric Society, vol. 72(1), pages 257-279, January.
    13. Mui, Vai-Lam, 1995. "The economics of envy," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 311-336, May.
    14. John William Hatfield & Paul R. Milgrom, 2005. "Matching with Contracts," American Economic Review, American Economic Association, vol. 95(4), pages 913-935, September.
    15. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 797-817.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alvin Roth, 2008. "Deferred acceptance algorithms: history, theory, practice, and open questions," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(3), pages 537-569, March.
    2. Erdil, Aytek & Ergin, Haluk, 2017. "Two-sided matching with indifferences," Journal of Economic Theory, Elsevier, vol. 171(C), pages 268-292.
    3. Zeballos, Eliana, 2015. "Getting a Leg Up or Pulling it Down? Interpersonal Comparisons and Destructive Actions: Experimental Evidence from Bolivia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205660, Agricultural and Applied Economics Association.
    4. Ehlers, Lars & Hafalir, Isa E. & Yenmez, M. Bumin & Yildirim, Muhammed A., 2014. "School choice with controlled choice constraints: Hard bounds versus soft bounds," Journal of Economic Theory, Elsevier, vol. 153(C), pages 648-683.
    5. José Alcalde & Antonio Romero-Medina, 2017. "Fair student placement," Theory and Decision, Springer, vol. 83(2), pages 293-307, August.
    6. Kumano, Taro & Watabe, Masahiro, 2012. "Dominant strategy implementation of stable rules," Games and Economic Behavior, Elsevier, vol. 75(1), pages 428-434.
    7. Umut M. Dur & Scott Duke Kominers & Parag A. Pathak & Tayfun Sönmez, 2013. "The Demise of Walk Zones in Boston: Priorities vs. Precedence in School Choice," NBER Working Papers 18981, National Bureau of Economic Research, Inc.
    8. , & ,, 2006. "A theory of stability in many-to-many matching markets," Theoretical Economics, Econometric Society, vol. 1(2), pages 233-273, June.
    9. Fuhito Kojima & Parag A. Pathak, 2009. "Incentives and Stability in Large Two-Sided Matching Markets," American Economic Review, American Economic Association, vol. 99(3), pages 608-627, June.
    10. Iwase, Yusuke & Tsuruta, Shoya & Yoshimura, Akina, 2022. "Nash implementation on the basis of general priorities," Games and Economic Behavior, Elsevier, vol. 132(C), pages 368-379.
    11. Kondratev, Aleksei Y. & Nesterov, Alexander S., 2022. "Minimal envy and popular matchings," European Journal of Operational Research, Elsevier, vol. 296(3), pages 776-787.
    12. Péter Biró & Sofya Kiselgof, 2015. "College admissions with stable score-limits," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(4), pages 727-741, December.
    13. Zeballos, Eliana, 2015. "Getting a Leg Up or Pulling it Down? Interpersonal Comparisons and Destructive Actions: Experimental Evidence from Bolivia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206857, Agricultural and Applied Economics Association.
    14. Marilda Sotomayor, 2012. "A further note on the college admission game," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(1), pages 179-193, February.
    15. Zeballos, Eliana, 2018. "Destructive actions and productivity: Experimental evidence on interpersonal comparisons among dairy farmers in Bolivia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 76(C), pages 82-94.
    16. Tayfun Sönmez, 2013. "Bidding for Army Career Specialties: Improving the ROTC Branching Mechanism," Journal of Political Economy, University of Chicago Press, vol. 121(1), pages 186-219.
    17. Alva, Samson, 2018. "WARP and combinatorial choice," Journal of Economic Theory, Elsevier, vol. 173(C), pages 320-333.
    18. Atila Abdulkadiroglu & Tommy Andersson, 2022. "School Choice," NBER Working Papers 29822, National Bureau of Economic Research, Inc.
    19. Kyle Greenberg & Parag A. Pathak & Tayfun Sönmez, 2020. "Mechanism Design meets Priority Design: Redesigning the US Army’s Branching Process Through Market Design," Boston College Working Papers in Economics 1035, Boston College Department of Economics.
    20. Marilda Sotomayor, 2022. "Some remarks on the modeling of discrete matching markets," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(1), pages 155-167, March.

    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Industrial Organization; Institutional and Behavioral Economics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaea16:235482. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.