Unravelling in two-sided matching markets and similarity of preferences
نویسنده
چکیده
This paper investigates the causes and welfare consequences of unravelling in two-sided matching markets. It shows that similarity of preferences is an important factor driving unravelling. In particular, it shows that under the ex-post stable mechanism (the mechanism that the literature focuses on), unravelling is more likely to occur when participants have more similar preferences. It also shows that any Pareto-optimal mechanism must prevent unravelling, and that the ex-post stable mechanism is Pareto-optimal if and only if it prevents unravelling. JEL: C72; C78; D82 Key-words: two-sided matching; unravelling; similarity of preferences
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ورودعنوان ژورنال:
- Games and Economic Behavior
دوره 69 شماره
صفحات -
تاریخ انتشار 2010