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A Field Study on Matching with Network Externalities

Author

Listed:
  • Alistair Wilson
  • Mariagiovanna Baccara
  • Ayse Imrohoroglu
  • Leeat Yariv

Abstract

We study the effects of network externalities on a unique matching protocol for faculty in a large U.S. professional school to offices in a new building. We collected institutional, web, and survey data on faculty`s attributes and choices. We first identify the different layers of the social network: institutional affiliation, coauthorships, and friendships. We demonstrate and quantify the effects of network externalities on choices and outcomes. Furthermore, we disentangle the different layers of the social network and quantify their relative impact. Finally, we assess the matching protocol from a welfare perspective. Our study suggests the importance and feasibility of accounting for network externalities in general assignment problems and evaluates a set of techniques that can be employed to this end.

Suggested Citation

  • Alistair Wilson & Mariagiovanna Baccara & Ayse Imrohoroglu & Leeat Yariv, 2009. "A Field Study on Matching with Network Externalities," Working Paper 486, Department of Economics, University of Pittsburgh, revised Sep 2011.
    • Handle: RePEc:pit:wpaper:486
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    More about this item

    Keywords

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    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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