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Paths to Stability in Two-sided Matching with Uncertainty

Author

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  • Lazarova, Emiliya A.
  • Dimitrov, Dinko

Abstract

We consider one-to-one matching problems under two modalities of uncertainty that differ in the way types are assigned to agents. Individuals have preferences over the possible types of the agents from the opposite market side and initially know the “name” but not the ”type” of the other players. Learning occurs via matching and using Bayes’ rule. We introduce the notion of a stable and consistent outcome, and show how the interaction between blocking and learning behavior shapes the existence of paths to stability in each of the uncertainty environments. Existence of stable and consistent outcomes then follows as a side result.

Suggested Citation

  • Lazarova, Emiliya A. & Dimitrov, Dinko, 2013. "Paths to Stability in Two-sided Matching with Uncertainty," Climate Change and Sustainable Development 146289, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:146289
    DOI: 10.22004/ag.econ.146289
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    Cited by:

    1. is not listed on IDEAS
    2. Bikhchandani, Sushil, 2017. "Stability with one-sided incomplete information," Journal of Economic Theory, Elsevier, vol. 168(C), pages 372-399.

    More about this item

    Keywords

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    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • 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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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