- Title
- Decentralized Matching with Aligned Preferences
- Author(s)
- Muriel Niederle Muriel Niederle (Stanford University)
- Leeat Yariv Leeat Yariv (Caltech)
- Abstract
- We study a simple model of a decentralized market game in which firms make directed offers to workers. We focus on markets in which agents have aligned preferences. When agents have complete information or when there are no frictions in the economy, there exists an equilibrium that yields the stable match. In the presence of market frictions and preference uncertainty, harsher assumptions on the richness of the economy have to be made in order for decentralized markets to generate stable outcomes in equilibrium.
- Creation Date
- 2009-03
- Section URL ID
- Paper Number
- 2009-3
- URL
- http://lyariv.mycpanel.princeton.edu//papers/DecMarOpenAligned.pdf
- File Function
- Jel
- C78
- Keyword(s)
- Decentralized Matching, Stability, Market Design
- Suppress
- false
- Series
- 13