Targeted search in matching markets

Anton Cheremukhin, Paulina Restrepo-Echavarria and Antonella Tutino

Journal of Economic Theory, 2020, vol. 185, issue C

Abstract: We propose a parsimonious matching model where a person's choice of whom to meet endogenizes the degree of randomness in matching. The analysis highlights the interaction between a productive motive, driven by the surplus attainable in a match, and a strategic motive, driven by reciprocity of interest of potential matches. We find that the interaction between these two motives differs with preferences—vertical versus horizontal—and that this interaction implies that preferences recovered using our model can look markedly different from those recovered using a model where the degree of randomness is not endogenous. We illustrate these results using data on the U.S. marriage market and show that the model can rationalize the finding of aspirational dating.

Keywords: Search; Matching; Endogenous randomness; Preferences (search for similar items in EconPapers)
JEL-codes: C78 D83 E24 J64 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Targeted Search in Matching Markets (2019)
Working Paper: Targeted Search in Matching Markets (2017)
Working Paper: Targeted search in matching markets (2016)
Working Paper: Targeted Search in Matching Markets (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:185:y:2020:i:c:s0022053119301061

DOI: 10.1016/j.jet.2019.104956

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