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Interviewing in Two-Sided Matching Markets

  • Robin S. Lee
  • Michael Schwarz

We introduce the interview assignment problem, which generalizes the one-to-one matching model of Gale and Shapley (1962) by introducing a stage of costly information acquisition. Agents may learn preferences over partners via costly interviews. Although there exist multiple equilibria where all agents receive the same number of interviews, efficiency depends on overlap -- the number of common interview partners among agents. We prove the equilibria with the highest degree of overlap yields the highest probability of being matched. The analysis suggests that institutions which ration interviews or create labor market segmentation may lead to greater efficiency in information acquisition activities.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14922.

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Date of creation: Apr 2009
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Handle: RePEc:nbr:nberwo:14922
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  1. Hector Chade & Lones Smith, 2005. "Simultaneous Search," NajEcon Working Paper Reviews 172782000000000033, www.najecon.org.
  2. Guillaume Haeringer & Myrna Wooders, 2011. "Decentralized job matching," International Journal of Game Theory, Springer, vol. 40(1), pages 1-28, February.
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  4. Echenique, Federico & Oviedo, Jorge, 2006. "A theory of stability in many-to-many matching markets," Theoretical Economics, Econometric Society, vol. 1(2), pages 233-273, June.
  5. Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
  6. Burdett, Kenneth, 1996. "Truncated means and variances," Economics Letters, Elsevier, vol. 52(3), pages 263-267, September.
  7. Alp Atakan, 2005. "Assortative Matching with Explicit Search Costs," 2005 Meeting Papers 218, Society for Economic Dynamics.
  8. Chakraborty, Archishman & Citanna, Alessandro & Ostrovsky, Michael, 2010. "Two-sided matching with interdependent values," Journal of Economic Theory, Elsevier, vol. 145(1), pages 85-105, January.
  9. Konishi, Hideo & Unver, M. Utku, 2006. "Credible group stability in many-to-many matching problems," Journal of Economic Theory, Elsevier, vol. 129(1), pages 57-80, July.
  10. Jens Josephson & Joel Shapiro, 2008. "Interviews and Adverse Selection," Working Papers 349, Barcelona Graduate School of Economics.
  11. Hoppe, Heidrun C. & Moldovanu, Benny & Sela, Aner, 2006. "The Theory of Assortative Matching Based on Costly Signals," CEPR Discussion Papers 5543, C.E.P.R. Discussion Papers.
  12. Mongell, Susan & Roth, Alvin E, 1991. "Sorority Rush as a Two-Sided Matching Mechanism," American Economic Review, American Economic Association, vol. 81(3), pages 441-64, June.
  13. Roth, Alvin E, 1984. "The Evolution of the Labor Market for Medical Interns and Residents: A Case Study in Game Theory," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 991-1016, December.
  14. Paul Schweinzer, 2008. "Labour market recruiting with intermediaries," Review of Economic Design, Springer, vol. 12(2), pages 119-127, June.
  15. Rachel E. Kranton & Deborah F. Minehart, 2000. "Networks versus Vertical Integration," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 570-601, Autumn.
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