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An Experimental Study of Decentralized Matching

Author

Listed:
  • Federico Echenique

    (Caltech)

  • Leeat Yariv

    (Caltech)

Abstract

We present an experimental study of decentralized one-to-one matching markets, such as labor or marriage markets. In our experiments, subjects are informed of everyone’s preferences and can make arbitrary non-binding match offers that are realized only when a certain period of market inactivity has elapsed. We find three main results. First, stable matches are the prevalent outcome. Second, in markets with multiple stable matches, the median stable match is selected most frequently. Third, the cardinal representation of ordinal preferences substantially impacts which stable match gets selected. Furthermore, the endogenous dynamic paths that lead to stability exhibit several persistent features.

Suggested Citation

  • Federico Echenique & Leeat Yariv, 2013. "An Experimental Study of Decentralized Matching," Working Papers 2013-3, Princeton University. Economics Department..
    • Handle: RePEc:pri:econom:2013-3
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    References listed on IDEAS

    as
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    Cited by:

    1. Gutin, Gregory Z. & Neary, Philip R. & Yeo, Anders, 2024. "Finding all stable matchings with assignment constraints," Games and Economic Behavior, Elsevier, vol. 148(C), pages 244-263.
    2. Yariv, Leeat & Agranov, Marina & Dianat, Ahrash & Samuelson, Larry, 2021. "Paying to Match: Decentralized Markets with Information Frictions," CEPR Discussion Papers 15637, C.E.P.R. Discussion Papers.
    3. Eric Budish & Judd B. Kessler, 2022. "Can Market Participants Report Their Preferences Accurately (Enough)?," Management Science, INFORMS, vol. 68(2), pages 1107-1130, February.
    4. Marina Agranov & Ahrash Dianat & Larry Samuelson & Leeat Yariv, 2021. "Paying to Match: Decentralized Markets with Information Frictions," Working Papers 2021-74, Princeton University. Economics Department..
    5. Marcelo Ariel Fernandez & Kirill Rudov & Leeat Yariv, 2022. "Centralized Matching with Incomplete Information," American Economic Review: Insights, American Economic Association, vol. 4(1), pages 18-33, March.

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    Keywords

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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