Home > Research literature > Working papers > Robust design in monotonic matching markets : |
Imprint: | Centre interuniversitaire de recherche en économie quantitative (CIREQ) 2018 |
Description: | 24 pag. |
Abstract: | We study two-sided matching markets among workers and firms. Workers seek one position at a firm but firms may employ several workers. In many applications those markets are monotonic: leaving positions unfilled is costly as for instance, for hospitals this means not being able to provide full service to its patients. A huge literature has advocated the use of stable mechanisms for clearinghouses. The interests among workers and firms are polarized among stable mechanisms, most famously the firm-proposing DA and the worker-proposing DA. We show that for the firmproposing DA ex-ante incentive compatibility and ex-post incentive compatibility are equivalent whereas this is not necessarily true for the worker-proposing DA. The firm-proposing DA turns out to be more robust than the worker-proposing DA under incomplete information when incentives of both sides of the market are important. |
Grants: | Ministerio de Economía y Competitividad ECO2017-83534-P Ministerio de Economía y Competitividad SEV-2015-0563 Agència de Gestió d'Ajuts Universitaris i de Recerca 2014/SGR-515 |
Rights: | Tots els drets reservats. |
Language: | Anglès |
Series: | Cahiers de recherche ; 04-2018 |
Document: | Working paper |
Subject: | Many-to-one matching market ; Stability ; Incomplete information ; Monotonic responsive extensions ; Robust mechanism design |
24 p, 524.5 KB |