Understanding Price Controls and Nonprice Competition with Matching Theory

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Understanding Price Controls and Nonprice Competition with Matching Theory

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The theory of two-sided matching markets has interested researchers for its theoretical appeal and relevance to real-life applications. The matching of medical residents and hospitals in the United States has been studied extensively by Alvin E. Roth (1984) and others. The National Resident Matching Program (NRMP), the matching authority in the US hospital-resident matching market, runs a centr...

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We relax the assumption of symmetric linear costs in B&L’s (2006) “Matching and Price Competition” and compare the pricing equilibrium that results to the firmoptimal competitive equilibrium. With linear and asymmetric costs, competition may not be localized in the pricing equilibrium, but all other qualitative comparisons of B&L (2006) hold. With non-linear and symmetric costs workers’ average...

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price theory

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ژورنال

عنوان ژورنال: American Economic Review

سال: 2012

ISSN: 0002-8282

DOI: 10.1257/aer.102.3.371