The Losses from Integration in Matching Markets can be Large
Theoretical Economics
2018-11-27 v1
Abstract
Although the integration of two-sided matching markets using stable mechanisms generates expected gains from integration, I show that there are worst-case scenarios in which these are negative. The losses from integration can be large enough that the average rank of an agent's spouse decreases by 37.5% of the length of their preference list in any stable matching mechanism.
Keywords
Cite
@article{arxiv.1810.10287,
title = {The Losses from Integration in Matching Markets can be Large},
author = {Josué Ortega},
journal= {arXiv preprint arXiv:1810.10287},
year = {2018}
}