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In a centralized marketplace that was designed to be simple, we identify participants whose choices are dominated. Using administrative data from Hungary, we show that college applicants make obvious mistakes: they forgo the free opportunity to receive a tuition waiver worth thousands of...
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---robust equilibrium---that requires only an asymptotically optimal behavior. We use it to study large random matching markets operated by … be non-truthful in robust equilibrium; however, the outcome must be arbitrarily close to the stable matching. Our results … preferences of mistaken agents, one should assume stable matching but not truth-telling …
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observed outcomes are stable, and among those a large majority culminate at the receiver-optimal stable matching. Second …
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We study experimentally how the network structure and length of pre-play communication affect behavior and outcome in a multi-player coordination game with conflicting preferences. Network structure matters but the interaction between network and time effects is more subtle. Under each time...
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This chapter of the Handbook of Game Theory (Vol. 3) provides an overview of the theory of Nash equilibrium and its refinements. The starting-point is the rationalistic approach to games and the question whether there exists a convincing, self-enforcing theory of rational behavior in...
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