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Paths to stability in two-sided matching under uncertainty

Author

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  • Emiliya Lazarova

    (University of East Anglia)

  • Dinko Dimitrov

    (Saarland University)

Abstract

We consider one-to-one matching problems under two modalities of uncertainty in which types are assigned to agents either with or without replacement. Individuals have preferences over the possible types of the agents from the opposite market side and initially know the ‘name’ but not the ‘type’ of their potential partners. In this context, learning occurs via matching and using Bayes’ rule. We introduce the notion of a stable and consistent outcome, and show how the interaction between blocking and learning behavior shapes the existence of paths to stability in each of these two uncertainty environments. Existence of stable and consistent outcomes then follows as a side result.

Suggested Citation

  • Emiliya Lazarova & Dinko Dimitrov, 2017. "Paths to stability in two-sided matching under uncertainty," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(1), pages 29-49, March.
    • Handle: RePEc:spr:jogath:v:46:y:2017:i:1:d:10.1007_s00182-015-0519-1
    DOI: 10.1007/s00182-015-0519-1
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    References listed on IDEAS

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    Cited by:

    1. Dasgupta, Sulagna, 2024. "Designing information to improve welfare in matching markets," Mathematical Social Sciences, Elsevier, vol. 131(C), pages 5-16.
    2. Kirill Rudov, 2024. "Fragile Stable Matchings," Papers 2403.12183, arXiv.org.
    3. Chen, Yi-Chun & Hu, Gaoji, 2020. "Learning by matching," Theoretical Economics, Econometric Society, vol. 15(1), January.
    4. Alston, Max, 2020. "On the non-existence of stable matches with incomplete information," Games and Economic Behavior, Elsevier, vol. 120(C), pages 336-344.
    5. Peralta, Esteban, 2024. "Not all is lost: Sorting and self-stabilizing sets," Games and Economic Behavior, Elsevier, vol. 146(C), pages 51-58.
    6. Timm Opitz & Christoph Schwaiger, 2023. "Reciprocal Preferences in Matching Markets," Rationality and Competition Discussion Paper Series 388, CRC TRR 190 Rationality and Competition.

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    More about this item

    Keywords

    Consistent outcomes; Paths to stability; Uncertainty; Two-sided matchings;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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