Asymptotically stable matchings and evolutionary dynamics of preference revelation games in marriage problems

Hidemasa Ishii and Nariaki Nishino

Papers from arXiv.org

Abstract: The literature on centralized matching markets often assumes that a true preference of each player is known to herself and fixed, but empirical evidence casts doubt on its plausibility. To circumvent the problem, we consider evolutionary dynamics of preference revelation games in marriage problems. We formulate the asymptotic stability of a matching, indicating the dynamical robustness against sufficiently small changes in players' preference reporting strategies, and show that asymptotically stable matchings are stable when they exist. The simulation results of replicator dynamics are presented to demonstrate the asymptotic stability. We contribute a practical insight for market designers that a stable matching may be realized by introducing a learning period in which participants find appropriate reporting strategies through trial and error. We also open doors to a novel area of research by demonstrating ways to employ evolutionary game theory in studies on centralized markets.

Date: 2022-05
New Economics Papers: this item is included in nep-des, nep-evo and nep-gth
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2205.08079

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