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We introduce a general class of simplicity standards that vary the foresight abilities required of agents in extensive-form games. Rather than planning for the entire future of a game, agents are presumed to be able to plan only for those histories they view as simple from their current...
Persistent link: https://www.econbiz.de/10012584083
Agents with reciprocal preferences prefer to be matched to a partner who also likes to collaborate with them. In this paper, we introduce and formalize reciprocal preferences, apply them to matching markets, and analyze the implications for mechanism design. Formally, the preferences of an agent...
Persistent link: https://www.econbiz.de/10014478421
We introduce a general class of simplicity standards that vary the foresight abilities required of agents in extensive-form games. Rather than planning for the entire future of a game, agents are presumed to be able to plan only for those histories they view as simple from their current...
Persistent link: https://www.econbiz.de/10013220157
We develop a model of assignment games with pairwise-identitydependent externalities. A concept of conjectural …
Persistent link: https://www.econbiz.de/10010191642
Pairing Games or Markets studied here are the non-two-sided NTU generalization of assignment games. We show that the Equilibrium Set is nonempty, that it is the set of stable allocations or the set of semistable allocations, and that it has several notable structural properties. We also...
Persistent link: https://www.econbiz.de/10010350435
We study manipulability of stable matching mechanisms and show that manipulability comparisons are equivalent to preference comparisons: for any agent, a mechanism is more manipulable than another if and only if this agent prefers the latter to the former. In particular, this implies that no two...
Persistent link: https://www.econbiz.de/10013064833
We investigate the similarities and differences between matching markets and other canonical economic settings in the presence of complementarity. In particular, we explain the formal connections between the structure of matching markets with complementary contracts and games with strategic...
Persistent link: https://www.econbiz.de/10012837982
Online platforms that match customers with service providers utilize a wide variety of designs: some implement a searchable directory of one side of the market (i.e., Airbnb, Google Local Services); some allow both sides of the market to search and initiate contact (i.e., Upwork, Care.com);...
Persistent link: https://www.econbiz.de/10012841828
We show that there is no consistent Pareto improvement over any stable mechanism. To overcome this impossibility, we introduce the following weak consistency requirement: Whenever a set of students, each of whom is assigned to a school that is under-demanded at the student-optimal stable...
Persistent link: https://www.econbiz.de/10012901491
We propose a solution to the trade-off between Pareto efficiency and stability in matching markets. We define a matching to be essentially stable if any claim initiates a chain of reassignments that ultimately results in the initial claimant losing the object she claimed to a third agent. Our...
Persistent link: https://www.econbiz.de/10012935844