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Evidence suggests that participants in direct student-proposing deferred-acceptance mechanisms (DA) play dominated strategies. To explain the data, we introduce expectation-based loss aversion into a school-choice setting and characterize choice-acclimating personal equilibria in DA. We find...
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Matching markets can be unstable when individuals prefer to be matched to a partner who also wants to be matched with … preferences exist, significantly decrease stability in matching markets, and are driven both by belief-based and preference …
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paper, we introduce and formalize reciprocal preferences, apply them to matching markets, and analyze the implications for … acceptance mechanism can achieve stability. These results provide insights into non-standard preferences in matching markets, and …
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Why do some incomplete information markets feature intermediaries while others do not? I study the allocation of two goods in an incomplete information setting with a single principal, multiple agents with unit demand, and interdependent valuations. I construct a novel dynamic mechanism...
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