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Stable Matching with Peer-Dependent Preferences: Existence and Cutoff Characterization

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  • Jacob D. Leshno

Abstract

This paper presents a framework for stable matching markets that accommodates the peer-dependent preferences employed in empirical work. We show the existence of a stable matching in a continuum economy and of an approximately stable matching in a large finite sampled economy under assumptions satisfied by standard empirical specifications. The analysis builds on a tractable characterization of stable matchings with peer-dependent preferences in terms of supply and demand equations along with a rational-expectations condition.

Suggested Citation

  • Jacob D. Leshno, 2026. "Stable Matching with Peer-Dependent Preferences: Existence and Cutoff Characterization," Papers 2608.18381, arXiv.org.
    • Handle: RePEc:arx:papers:2608.18381
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    File URL: https://arxiv.org/pdf/2608.18381
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