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Imperfect competition in two-sided matching markets

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  • Azevedo, Eduardo M.

Abstract

This paper considers a simple equilibrium model of an imperfectly competitive two-sided matching market. Firms and workers may have heterogeneous preferences over matches on the other side, and the model allows for both uniform and personalized wages or contracts. To make the model tractable, I use the Azevedo and Leshno (2013) framework, in which a finite number of firms is matched to a continuum of workers.

Suggested Citation

  • Azevedo, Eduardo M., 2014. "Imperfect competition in two-sided matching markets," Games and Economic Behavior, Elsevier, vol. 83(C), pages 207-223.
    • Handle: RePEc:eee:gamebe:v:83:y:2014:i:c:p:207-223
    DOI: 10.1016/j.geb.2013.11.009
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    2. Rong Wang & Li Xu & Hashim Zameer & Yasir Ahmed Solangi, 2020. "Modeling Two-Sided Matching Considering Agents’ Psychological Behavior Based on Regret Theory," SAGE Open, , vol. 10(2), pages 21582440209, June.
    3. Susan Athey & Emilio Calvano & Joshua S. Gans, 2018. "The Impact of Consumer Multi-homing on Advertising Markets and Media Competition," Management Science, INFORMS, vol. 64(4), pages 1574-1590, April.
    4. Eduardo M. Azevedo & Jacob D. Leshno, 2016. "A Supply and Demand Framework for Two-Sided Matching Markets," Journal of Political Economy, University of Chicago Press, vol. 124(5), pages 1235-1268.
    5. Yusuke Narita, 2021. "A Theory of Quasi-Experimental Evaluation of School Quality," Management Science, INFORMS, vol. 67(8), pages 4982-5010, August.
    6. Alvin E. Roth, 2010. "Marketplace Institutions Related to the Timing of Transactions," NBER Working Papers 16556, National Bureau of Economic Research, Inc.
    7. Peng, Zixuan & Shan, Wenxuan & Guan, Feng & Yu, Bin, 2016. "Stable vessel-cargo matching in dry bulk shipping market with price game mechanism," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 76-94.
    8. Kohei Kawamura & József Sákovics, 2014. "Spillovers of Equal Treatment in Wage Offers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(5), pages 487-501, November.
    9. Seungjin Han, 2020. "Quasi Ex-Post Equilibrium in Competing Mechanisms," Department of Economics Working Papers 2020-11, McMaster University.
    10. Hagen, Martin, 2022. "Tradable immigration quotas revisited," Journal of Public Economics, Elsevier, vol. 208(C).
    11. Hatfield, John William & Plott, Charles R. & Tanaka, Tomomi, 2016. "Price controls, non-price quality competition, and the nonexistence of competitive equilibrium," Games and Economic Behavior, Elsevier, vol. 99(C), pages 134-163.
    12. Yusuke Narita, 2020. "A Theory of Quasi-Experimental Evaluation of School Quality," Working Papers 2020-085, Human Capital and Economic Opportunity Working Group.
    13. Alvin E. Roth, 2012. "Marketplace Institutions Related to the Timing of Transactions: Reply to Priest," Journal of Labor Economics, University of Chicago Press, vol. 30(2), pages 479-494.
    14. Kawamura, Kohei & Sákovics, József, 2013. "Partial Equal Treatment in Wage Offers," SIRE Discussion Papers 2013-06, Scottish Institute for Research in Economics (SIRE).
    15. Honarvar, Morteza & Kamali Shahdadi, Behrang, 2021. "Stability and immunity to capacity manipulation in large matching markets," Economics Letters, Elsevier, vol. 206(C).

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    More about this item

    Keywords

    Matching markets; Imperfect competition;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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