Paths to stability in two-sided matching under uncertainty

We consider one-to-one matching problems where individuals have preferences over the possible types of the agents on the opposite side of the market. Initially, players know the ‘name’but not the ‘type’ of their potential partners. In this context learning occurs via matching and using Bayes’ rule. Types are assigned to agents as random independent draws from the set of types without replacement. We introduce the notion of a stable and consistent outcome, and show how the interaction between blocking and learning behavior shapes the existence of paths to stability in such an environment. Existence of stable and consistent outcomes then follows as a side result. Keywords: consistent outcomes, paths to stability, uncertainty, twosided matching JEL Classi…cation Numbers: C62, C78, D71, D83 We are thankful to Riccardo Di Maria for his patience.