The Price of Stability in Matching Markets
This paper studies the inefficiency of one-to-one matching markets as measured by the price of stability. We begin by providing some theoretical upper bounds on this type of inefficiency, bounds that vary with the composition of participants’ ordinal preference lists. We then turn to simulation experiments to further describe how changes in basic characteristics of agents’ preferences can increase or decrease the efficiency of stable matchings. Our results have important implications for those who seek to improve the functioning of real-world matching markets. Though it may be difficult or even impossible to completely ascertain preferences in a real-world market, it is possible to get a sense of general levels of correlation and intercorrelation from an empirical sample. Our results can then be of help to market designers, letting them know how substantial the price of stability is likely to be.
|Date of creation:||Apr 2010|
|Date of revision:|
|Contact details of provider:|| Postal: University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063|
Phone: (860) 486-4889
Fax: (860) 486-4463
Web page: http://www.econ.uconn.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Atila Abdulkadiroglu & Parag A. Pathak & Alvin E. Roth & Tayfun Sönmez, 2006.
"Changing the Boston School Choice Mechanism,"
122247000000001022, UCLA Department of Economics.
- Atila Abdulkadiroglu & Parag Pathak & Alvin E. Roth & Tayfun Sonmez, 2006. "Changing the Boston School Choice Mechanism," NBER Working Papers 11965, National Bureau of Economic Research, Inc.
- 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.
- Atila Abdulkadiroğlu & Parag A. Pathak & Alvin E. Roth, 2005.
"The New York City High School Match,"
American Economic Review,
American Economic Association, vol. 95(2), pages 364-367, May.
When requesting a correction, please mention this item's handle: RePEc:uct:uconnp:2010-16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark McConnel)
If references are entirely missing, you can add them using this form.