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In this paper, we study the fundamental problem of finding a stable matching in two-sided matching markets. In the classic variant, it is assumed that both sides of the market submit a ranked list of all agents on the other side. However,…

Computer Science and Game Theory · Computer Science 2026-02-03 Samuel McCauley , Benjamin Moseley , Helia Niaparast , Shikha Singh

Matching plays a vital role in the rational allocation of resources in many areas, ranging from market operation to people's daily lives. In economics, the term matching theory is coined for pairing two agents in a specific market to reach…

Social and Information Networks · Computer Science 2021-03-17 Jing Ren , Feng Xia , Xiangtai Chen , Jiaying Liu , Mingliang Hou , Ahsan Shehzad , Nargiz Sultanova , Xiangjie Kong

It has been assumed that arbitrage profits are not possible in efficient markets, because future prices are not predictable. Here we show that predictability alone is not a sufficient measure of market efficiency. We instead propose to…

Statistical Mechanics · Physics 2009-11-10 R. Rothenstein , K. Pawelzik

Bipartite matching problem is to study two disjoint groups of agents who need to be matched pairwise. It can be applied to many real-world scenarios and explain many social phenomena. In this article, we study the effect of competition on…

Physics and Society · Physics 2018-11-15 Yi-Xiu Kong , Guang-Hui Yuan , Lei Zhou , Rui-Jie Wu , Gui-Yuan Shi

We study stability notions for networked many-to-many matching markets with individually insignificant agents in distributional form. Outcomes are formulated as joint distributions over characteristics of agents and contract choices.…

Theoretical Economics · Economics 2026-05-01 Michael Greinecker , Karolina Vocke

A two-sided market consists of two sets of agents, each of whom have preferences over the other (Airbnb, Upwork, Lyft, Uber, etc.). We propose and analyze a repeated matching problem, where some set of matches occur on each time step, and…

Computer Science and Game Theory · Computer Science 2020-09-22 Sreenivas Gollapudi , Kostas Kollias , Benjamin Plaut

In two-sided matching markets with contracts, quantile (or generalized median) stable mechanisms represent an interesting class that produces stable allocations which can be viewed as compromises between both sides of the market. These…

Theoretical Economics · Economics 2025-03-18 R. Pablo Arribillaga , Eliana Pepa-Risma

Financial markets are subject to long periods of polarized behavior, such as bull-market or bear-market phases, in which the vast majority of market participants seem to almost exclusively choose one action (between buying or selling) over…

Physics and Society · Physics 2007-05-23 Sitabhra Sinha , Srinivas Raghavendra

We revisit the well-studied problem of designing mechanisms for one-sided matching markets, where a set of $n$ agents needs to be matched to a set of $n$ heterogeneous items. Each agent $i$ has a value $v_{i,j}$ for each item $j$, and these…

Computer Science and Game Theory · Computer Science 2020-01-22 Rediet Abebe , Richard Cole , Vasilis Gkatzelis , Jason D. Hartline

Prediction markets suffer from reduced liquidity and price accuracy for long-horizon events due to the opportunity cost of committed capital. Recently, major platforms have introduced interest-bearing positions to mitigate this…

General Economics · Economics 2026-02-25 Caleb Maresca

Stability is crucial in matching markets, yet in many real-world settings - from hospital residency allocations to roommate assignments - full stability is either impossible to achieve or can come at the cost of leaving many agents…

Computer Science and Game Theory · Computer Science 2026-01-21 Frederik Glitzner , David Manlove

We study a version of the minority game in which one agent is allowed to join the game in a random fashion. It is shown that in the crowded regime, i.e., for small values of the memory size $m$ of the agents in the population, the agent…

Statistical Mechanics · Physics 2009-11-10 K. F. Yip , T. S. Lo , P. M. Hui , N. F. Johnson

We consider a one-sided assignment market or exchange network with transferable utility and propose a model for the dynamics of bargaining in such a market. Our dynamical model is local, involving iterative updates of 'offers' based on…

Computer Science and Game Theory · Computer Science 2015-03-14 Mohsen Bayati , Christian Borgs , Jennifer Chayes , Yashodhan Kanoria , Andrea Montanari

Even when confronted with the same data, agents often disagree on a model of the real-world. Here, we address the question of how interacting heterogenous agents, who disagree on what model the real-world follows, optimize their trading…

Mathematical Finance · Quantitative Finance 2019-12-13 Philippe Casgrain , Sebastian Jaimungal

This paper studies matching markets where institutions are matched with possibly more than one individual. The matching market contains some couples who view the pair of jobs as complements. First, we show by means of an example that a…

Theoretical Economics · Economics 2025-07-11 Shashwat Khare , Souvik Roy , Ton Storcken

As LLM agents advance, they are increasingly mediating economic decisions, ranging from product discovery to transactions, on behalf of users. Such applications promise benefits but also raise many questions about agent accountability and…

Machine learning algorithms are increasingly used to make or support decisions in a wide range of settings. With such expansive use there is also growing concern about the fairness of such methods. Prior literature on algorithmic fairness…

Machine Learning · Computer Science 2023-04-17 Arindam Ray , Balaji Padmanabhan , Lina Bouayad

In many centralized labor markets candidates interview with potential employers before matches are formed through a clearinghouse One prominent example is the market for medical residencies and fellowships, which in recent years has had a…

Theoretical Economics · Economics 2023-09-07 Maxwell Allman , Itai Ashlagi

The past few years have seen a surge of work on fairness in allocation problems where items must be fairly divided among agents having individual preferences. In comparison, fairness in settings with preferences on both sides, that is,…

Computer Science and Game Theory · Computer Science 2022-05-26 Shivika Narang , Arpita Biswas , Y Narahari

We demonstrate that minority mechanisms arise in the dynamics of markets because of effects of price impact; accordingly the relative importance of minority and delayed majority mechanisms depends on the frequency of trading. We then use…

Statistical Mechanics · Physics 2008-12-02 Damien Challet , Tobias Galla