Stability in repeated matching markets

Ce Liu ()
Additional contact information
Ce Liu: Department of Economics, Michigan State University

Theoretical Economics, 2023, vol. 18, issue 4

Abstract: This paper develops a framework for studying repeated matching markets. The model departs from the Gale-Shapley matching model by having a fixed set of long-lived players (firms) match with a new generation of short-lived players (workers) in every period. I define history-dependent and self-enforcing matching processes in this repeated matching environment and characterize the firms' payoffs. Firms fall into one of two categories: some firms must obtain the same payoff as they would in static stable matchings, and this holds at every patience level; meanwhile, repetition and history dependence can enlarge the set of sustainable payoffs for the other firms, provided that the firms are sufficiently patient. In large matching markets with correlated preferences, the first kind of firms corresponds to ``elite'' firms that make up at most a vanishingly small fraction of the market. The vast majority of firms fall into the second category.

Keywords: Gale-Shapley; matching; repeated game; stability (search for similar items in EconPapers)
JEL-codes: C71 C72 C73 C78 D47 (search for similar items in EconPapers)
Date: 2023-11-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20231711/37915/1154 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:4898

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
Bibliographic data for series maintained by Martin J. Osborne ().