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Since no stable matching mechanism can induce truth-telling as a dominant strategy for all participants, there is often … room in matching markets for strategic misrepresentation (Roth [25]). In this paper we study a natural form of strategic …
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A costless signaling mechanism has been proposed as a device to improve welfare in decentralized two-sided matching … information between firms and workers and show that costless signaling is actually harmful in some matching markets. Specifically … facilitates match formation. -- Matching Markets ; Signaling …
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-empty subset of agents S if (a) no agent in S prefers the first matching to the second, and (b) no agent in S and his room-mate in … S under the second matching prefer each other to their respective room-mates in the first matching, then no room-mate of … an agent in S prefers the second matching to the first. This result is a strengthening of a result originally due to …
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In the presence of a time-inconsistency problem with optimal agency contracts, we show that competitive markets implement allocations that Pareto dominate those achieved by a benevolent planner, they induce strictly more effort, and they sometimes make the commitment problem disappear entirely....
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Urban water conservation is typically achieved through prescriptive regulations, including the rationing of water for particular uses and requirements for the installation of particular technologies. A significant shift has occurred in pollution control regulations toward market-based policies...
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