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Not all is lost: Sorting and self-stabilizing sets

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  • Peralta, Esteban

Abstract

It is well known that in the absence of transfers, stable matchings are positive assortative when agents' preferences are strictly monotonic in each other's types and types are commonly known. Instead, monotonicity is consistent with the existence of stable matchings that exhibit negative sorting when types on one side of the market are private information. This paper sheds light on the scope and meaning of this consistency by showing that within familiar monotonic markets we cannot conclude that a stable matching is negative, and not positive, assortative.

Suggested Citation

  • Peralta, Esteban, 2024. "Not all is lost: Sorting and self-stabilizing sets," Games and Economic Behavior, Elsevier, vol. 146(C), pages 51-58.
    • Handle: RePEc:eee:gamebe:v:146:y:2024:i:c:p:51-58
    DOI: 10.1016/j.geb.2024.04.008
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    References listed on IDEAS

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    1. Qingmin Liu, 2020. "Stability and Bayesian Consistency in Two-Sided Markets," American Economic Review, American Economic Association, vol. 110(8), pages 2625-2666, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Incomplete information; Sorting; Stable matching;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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