On random matching markets: properties and equilibria

• Autor(a) principal: Pais, Joana
• Data de Publicação: 2006
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.5/2626
• topic: Matching Markets; Stability; Random Mechanism

We consider centralized matching markets in which, starting from an arbitrary match¬ing, firms are successively chosen in a random fashion and offer their positions to the workers they prefer the most. We propose an algorithm that generalizes some well-known algorithms and explore some of its properties. In particular, different executions of the algorithm may lead to diferent output matchings. We then study incentives in the rev¬elation game induced by the algorithm. We prove that ordinal equilibria always exist. Furthermore, every matching that results from an equilibrium play of the game is stable for a particular preference profile. Namely, if an ordinal equilibrium exists in which firms reveal their true preferences, only matchings that are stable for the true preferences can be obtained.