 Dynamically stable matchingTheoretical Economics, 2022, vol. 17, issue 2 Abstract: I introduce a stability notion, dynamic stability, for two-sided dynamic matching markets where (i) matching opportunities arrive over time, (ii) matching is one-to-one, and (iii) matching is irreversible. The definition addresses two conceptual issues. First, since not all agents are available to match at the same time, one must establish which agents are allowed to form blocking pairs. Second, dynamic matching markets exhibit a form of externality that is not present in static markets: an agent’s payoff from remaining unmatched cannot be defined independently of what other contemporaneous agents’ outcomes are. Dynamically stable matchings always exist. Dynamic stability is a necessary condition to ensure timely participation in the economy by ensuring that agents do not strategically delay the time at which they are available to match. Keywords: Dynamic stability; dynamic matching; stable matching; non-transferable utility; externalities; credibility; market design; dynamic arrivals; aftermarkets (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:4187 Access Statistics for this article Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill More articles in Theoretical Economics from Econometric Society |
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