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Dynamically stable matching

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  • Doval, Laura

    (Economics Division, Columbia Business School, Columbia University)

Abstract

I introduce a stability notion, dynamic stability, for two-sided dynamic matching markets where (i) matching opportunities arrive over time, (ii) matching is one-to-one, and (iii) matching is irreversible. The definition addresses two conceptual issues. First, since not all agents are available to match at the same time, one must establish which agents are allowed to form blocking pairs. Second, dynamic matching markets exhibit a form of externality that is not present in static markets: an agent’s payoff from remaining unmatched cannot be defined independently of what other contemporaneous agents’ outcomes are. Dynamically stable matchings always exist. Dynamic stability is a necessary condition to ensure timely participation in the economy by ensuring that agents do not strategically delay the time at which they are available to match.

Suggested Citation

  • Doval, Laura, 2022. "Dynamically stable matching," Theoretical Economics, Econometric Society, vol. 17(2), May.
    • Handle: RePEc:the:publsh:4187
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    Cited by:

    1. Marco LiCalzi, 2022. "Bipartite choices," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 45(2), pages 551-568, December.
    2. Battal Doğan & M. Bumin Yenmez, 2023. "When does an additional stage improve welfare in centralized assignment?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1145-1173, November.
    3. Davi B. Costa, 2021. "Benefits of marriage as a search strategy," Papers 2108.04885, arXiv.org, revised Aug 2021.
    4. Eunhee Kim, 2024. "Repeated matching, career concerns, and firm size," Journal of Economics, Springer, vol. 142(1), pages 45-80, June.
    5. Günnur Ege Bilgin, 2024. "Decentralized Many-to-One Matching With Random Search," CRC TR 224 Discussion Paper Series crctr224_2024_541, University of Bonn and University of Mannheim, Germany.
    6. Shi, Fanqi, 2021. "Stability in sequential matching with incomplete information," Games and Economic Behavior, Elsevier, vol. 129(C), pages 492-502.

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    More about this item

    Keywords

    Dynamic stability; dynamic matching; stable matching; non-transferable utility; externalities; credibility; market design; dynamic arrivals; aftermarkets;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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