On the operation of multiple matching markets

Hidekazu Anno and Morimitsu Kurino

Games and Economic Behavior, 2016, vol. 100, issue C, 166-185

Abstract: We provide a new perspective on how to operate matching markets when there are many types of markets. Our finding is that the market-wise adaptation of strategy-proof and non-wasteful rules yields a strategy-proof rule with the following efficiency property: no strategy-proof rule Pareto-dominates the rule. Such rules are abundant as they include the market-wise use of the well-known priority-based rules of the top trading cycles and the deferred acceptance. This result gives theoretical support to the independent operation of markets observed in real-life markets as well as our practice in Market Design that separately treats each market for its design.

Keywords: Market design; Strategy-proofness; Second-best incentive compatibility; Top trading cycles rules; Deferred acceptance rules (search for similar items in EconPapers)
JEL-codes: C78 D47 D71 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:100:y:2016:i:c:p:166-185

DOI: 10.1016/j.geb.2016.10.001

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