Robust Design in Monotonic Matching Markets: A Case for Firm-Proposing Deferred-Acceptance
Lars Ehlers and
Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ
We study two-sided matching markets among workers and firms. Workers seek one position at a firm but firms may employ several workers. In many applications those markets are monotonic: leaving positions unfilled is costly as for instance, for hospitals this means not being able to provide full service to its patients. A huge literature has advocated the use of stable mechanisms for clearinghouses. The interests among workers and firms are polarized among stable mechanisms, most famously the firm-proposing DA and the worker-proposing DA. We show that for the firm-proposing DA ex-ante incentive compatibility and ex-post incentive compatibility are equivalent whereas this is not necessarily true for the worker-proposing DA. The firm-proposing DA turns out to be more robust than the worker-proposing DA under incomplete information when incentives of both sides of the market are important.
Keywords: many-to-one matching market; stability; incomplete information; monotonic responsive extensions; robust mechanism design (search for similar items in EconPapers)
JEL-codes: C78 D81 J44 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-des and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Robust design in monotonic matching markets: A case for firm-proposing deferred-acceptance (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mtl:montec:04-2018
Access Statistics for this paper
More papers in Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ Contact information at EDIRC.
Bibliographic data for series maintained by Sharon BREWER ().