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Transparent Matching Mechanisms

Author

Listed:
  • Markus Möller

    (University of Bonn)

Abstract

I study a central authority’s ability to commit to a publicly announced mechanism in a one-to-one agent-object matching model. The authority announces a strategy-proof mechanism and then privately selects a mechanism to initiate a matching. An agent’s observation in form of the final matching has an innocent explanation (Akbarpour and Li, 2020), if given the agent’s reported preferences, there is a combination with other agents’ preferences leading to an identical observation under the announced mechanism. The authority can only commit up to safe deviations (Akbarpour and Li, 2020)—mechanisms that produce only observations with innocent explanations. For efficient or stable announcements, I show that no safe deviation exists if and only if the announced mechanism is dictatorial. I establish that the Deferred Acceptance (DA) Mechanism (Gale and Shapley, 1962) implies commitment to stability. Finally, I show that group strategy-proof and efficient announcements allow commitment to efficiency only if they are dictatorial.

Suggested Citation

  • Markus Möller, 2024. "Transparent Matching Mechanisms," ECONtribute Discussion Papers Series 306, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:306
    as

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    File URL: https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_306_2024.pdf
    File Function: First version, 2024
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Matching; Transparency; Partial Commitment; Strategy-Proof; Stability; Efficiency; DA; TTC;
    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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