Efficiency and Stability in Large Matching Markets
Yeon-Koo Che and
Olivier Tercieux
Post-Print from HAL
Abstract:
We study Pareto efficient mechanisms in matching markets when the number of agents is large and individual preferences are randomly drawn from a class of distributions, allowing for both common and idiosyncratic shocks. We provide a broad set of circumstances under which, as the market grows large, all Pareto efficient mechanisms—including top trading cycles (with an arbitrary ownership structure), serial dictatorship (with an arbitrary serial order), and their randomized variants—produce a distribution of agent utilities that in the limit coincides with the utilitarian upper bound. This implies that Pareto efficient mechanisms are uniformly asymptotically payoff equivalent "up to the renaming of agents." Hence, when the conditions of our model are met, policy makers need not discriminate among Pareto efficient mechanisms based on the aggregate payoff distribution of participants.
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (18)
Published in Journal of Political Economy, 2019, 127 (5), pp.2301-2342. ⟨10.1086/701791⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Efficiency and Stability in Large Matching Markets (2019)
Working Paper: Efficiency and Stability in Large Matching Markets (2015) 
Working Paper: Efficiency and Stability in Large Matching Markets (2015) 
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:hal:journl:halshs-02087847
DOI: 10.1086/701791
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().