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Beyond the Spanish MIR with Consent: (Hidden) Cooperation and Coordination in Matching

Listed author(s):
  • Alcalde, José

    ()

    (University of Alicante, D. Quantitative Methods and Economic Theory)

Sequential mechanisms to solve matching problems are useful to promote (hidden) cooperation between agents. Taking as a starting point the MIR mechanism, employed in Spain to match medical students and residency programs (in privately owned hospitals), we find that: (1) In the current system, where the number of students that each program might enroll is limited, the single equilibrium allocation can be unstable. (2) When the above limit is not (formally) imposed,instability is not expected to occur. Nevertheless, the multiplicity of equilibria shows that coordination failure might emerge, generating a social welfare loss. (3) When the role of students and hospitals is reversed in the MIR mechanism, (hidden) cooperation is guaranteed. Moreover, coordination failure disappears.

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Paper provided by University of Alicante, D. Quantitative Methods and Economic Theory in its series QM&ET Working Papers with number 17-1.

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Length: 37 pages
Date of creation: 21 Feb 2017
Handle: RePEc:ris:qmetal:2017_001
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