Consistent Conjectures in Dynamic Matching Markets
Abstract
We provide a framework to study stability notions for two-sided dynamic matching markets in which matching is one-to-one and irreversible. The framework gives center stage to the set of matchings an agent anticipates would ensue should they remain unmatched, which we refer to as the agent's conjectures. A collection of conjectures, together with a pairwise stability and individual rationality requirement given the conjectures, defines a solution concept for the economy. We identify a sufficient condition--consistency--for a family of conjectures to lead to a nonempty solution (cf. Hafalir, 2008). As an application, we introduce two families of consistent conjectures and their corresponding solution concepts: continuation-value-respecting dynamic stability, and the extension to dynamic markets of the solution concept in Hafalir (2008), sophisticated dynamic stability.
Cite
@article{arxiv.2407.04857,
title = {Consistent Conjectures in Dynamic Matching Markets},
author = {Laura Doval and Pablo Schenone},
journal= {arXiv preprint arXiv:2407.04857},
year = {2024}
}