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Efficiency in Matching Markets with Regional Caps: The Case of the Japan Residency Matching Program

  • Yuichiro Kamada


    (Harvard University)

  • Fuhito Kojima


    (Stanford University)

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    In an attempt to increase the placement of medical residents to rural hospitals, the Japanese government recently introduced "regional caps" which restrict the total number of residents matched within each region of the country. The government modifi ed the deferred acceptance mechanism incorporating the regional caps. This paper shows that the current mechanism may result in avoidable ineffciency and instability and proposes a better mechanism that improves upon it in terms of effciency and stability while meeting the regional caps. More broadly, the paper contributes to the general research agenda of matching and market design to address practical problems.

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    Paper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 10-011.

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    Date of creation: Oct 2010
    Date of revision:
    Handle: RePEc:sip:dpaper:10-011
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    1. Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth & Tayfun Sönmez, 2006. "Changing the Boston School Choice Mechanism," Boston College Working Papers in Economics 639, Boston College Department of Economics.
    2. Ünver, M. Utku & Sönmez, Tayfun & Roth, Alvin, 2007. "Efficient Kidney Exchange: Coincidence of Wants in a Markets with Compatibility-Based Preferences," Scholarly Articles 2562809, Harvard University Department of Economics.
    3. Alvin E. Roth & Tayfun Sönmez & M. Utku Ünver, 2004. "Pairwise Kidney Exchange," Boston College Working Papers in Economics 620, Boston College Department of Economics.
    4. Tayfun Sonmez & M. Utku Unver, 2003. "Course Bidding at Business Schools," Game Theory and Information 0306001, EconWPA, revised 02 Jan 2004.
    5. Tayfun Sönmez & M. Utku Ünver, 2009. "Matching, Allocation, and Exchange of Discrete Resources," Boston College Working Papers in Economics 717, Boston College Department of Economics.
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