Small numbers matching markets: Unstable and inefficient due to over-competition?
The extant literature on matching markets assumes ordinal preferences for matches, while bargaining within matches is mostly excluded. Central for this paper, however, is the bargaining over joint profits from potential matches. We investigate, both theoretically and experimentally, a seemingly simple allocation task in a 2x2 market with repeated negotiations. More than 75% of the experimental allocations are unstable, and 40% of the matches are inefficient (in cases where inefficiency is possible). By defining the novel concept 'altruistic core', we can explain the occurrence of inefficient matches as well as the significant behavioral differences among our six treatments.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Grosse Scharrnstrasse 59, 15230 Frankfurt (Oder)|
Phone: +49 (0)335 5534 2387
Fax: +49 (0)335 5534 2516
Web page: http://www.wiwi.euv-frankfurt-o.de/en/index.html
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.:
- Alvin E. Roth & Tayfun Sönmez & M. Utku Ünver, 2004.
The Quarterly Journal of Economics,
Oxford University Press, vol. 119(2), pages 457-488.
- Roth, Alvin & Ãœnver, M. Utku & SÃ¶nmez, Tayfun, 2004. "Kidney Exchange," Scholarly Articles 2580565, Harvard University Department of Economics.
- Alvin E. Roth & Tayfun Sonmez & M. Utku Unver, 2003. "Kidney Exchange," NBER Working Papers 10002, National Bureau of Economic Research, Inc.
- Alvin E. Roth & Tayfun Sonmez & M. Utku Unver, 2003. "Kidney Exchange," Game Theory and Information 0308002, EconWPA.
- Abdulkadiroglu, Atila & Sonmez, Tayfun, 1999. "House Allocation with Existing Tenants," Journal of Economic Theory, Elsevier, vol. 88(2), pages 233-260, October.
- Ehlers, Lars, 2007.
"Von Neumann-Morgenstern stable sets in matching problems,"
Journal of Economic Theory,
Elsevier, vol. 134(1), pages 537-547, May.
- EHLERS, Lars, 2005. "Von Neumann-Morgenstern Stable Sets in Matching Problems," Cahiers de recherche 2005-11, Universite de Montreal, Departement de sciences economiques.
- EHLERS, Lars, 2005. "Von Neumann-Morgenstern Stable Sets in Matching Problems," Cahiers de recherche 12-2005, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Fehr, Ernst & Schmidt, Klaus M., .
"A theory of fairness, competition, and cooperation,"
Chapters in Economics,
University of Munich, Department of Economics.
- Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers.
- Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
- Steffen Huck & Hans-Theo Normann & Jörg Oechssler, 2001.
"Two are Few and Four are Many: Number Effects in Experimental Oligopolies,"
Bonn Econ Discussion Papers
bgse12_2001, University of Bonn, Germany.
- Huck, Steffen & Normann, Hans-Theo & Oechssler, Jorg, 2004. "Two are few and four are many: number effects in experimental oligopolies," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 435-446, April.
- Fahr, René & Sunde, Uwe, 2004.
"Occupational job creation: Patterns and implications,"
Munich Reprints in Economics
20488, University of Munich, Department of Economics.
- René Fahr & Uwe Sunde, 2004. "Occupational job creation: patterns and implications," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 407-435, July.
- repec:cdl:ucsdec:198797 is not listed on IDEAS
- Shigeru Fugita & Garey Ramey, 2006.
"Job matching and propagation,"
06-13, Federal Reserve Bank of Philadelphia.
- Ramey, Garey & Fujita, Shigeru, 2006. "Job Matching and Propagation," University of California at San Diego, Economics Working Paper Series qt53s671h7, Department of Economics, UC San Diego.
- Nosaka, Hiromi, 2007. "Specialization and competition in marriage models," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 104-119, May.
When requesting a correction, please mention this item's handle: RePEc:zbw:euvwdp:270. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.