Strategic complementarities and unraveling in matching markets

Artikel

We present a theoretical explanation of inefficient early matching in matching markets. Our explanation is based on strategic complementarities and strategic unraveling. We identify a negative externality imposed on the rest of the market by agents who make early offers. As a consequence, an agent may make an early offer because she is concerned that others are making early offers. Yet other agents make early offers because they are concerned that others worry about early offers; and so on and so forth. The end result is that any given agent is more likely to make an early offer than a late offer.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 11 ; Year: 2016 ; Issue: 1 ; Pages: 1-39 ; New Haven, CT: The Econometric Society

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Positive Analysis of Policy Formulation and Implementation ; Asymmetric and Private Information; Mechanism Design
• Subject: Stable matching ; Gale-Shapley ; unraveling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Echenique, Federico ; Pereyra, Juan Sebastián
• Event: Veröffentlichung
• (who): The Econometric Society
• (where): New Haven, CT
• (when): 2016

Further information

• DOI: doi:10.3982/TE1831
• Handle: http://hdl.handle.net/10419/150270
• Last update: 10.03.2025, 11:44 AM CET