Incentives in Decentralized Random Matching Markets

Joana Pais ()

No 2006/12, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: Decentralized markets are modeled by means of a sequential game where, starting from any matching situation, firms are randomly given the opportunity to make job offers. In this random context, we prove the existence of ordinal subgame perfect equilibria where firms act according to a list of preferences. Moreover, every such equilibrium preserves stability for a particular profile of preferences. In particular, when firms act truthfully, every outcome is stable for the true preferences. Conversely, when the initial matching is the empty matching, every stable matching can be reached as the outcome of an ordinal equilibrium play of the game.

Keywords: Matching Markets; Stability; Random Mechanisms. (search for similar items in EconPapers)
JEL-codes: C78 J44 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-gth
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Incentives in decentralized random matching markets (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp122006

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More papers in Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa Department of Economics, ISEG - Lisbon School of Economics and Management, Universidade de Lisboa, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL.
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