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The losses from integration in matching markets can be large

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  • Ortega, Josué
Abstract
Although the integration of two-sided matching markets using stable mechanisms generates expected gains from integration, I show that there are worst case scenarios in which these are negative. The losses from integration can be large enough that the average rank of an agent’s spouse decreases by 37.5% of the length of their preference list in any stable matching mechanism.

Suggested Citation

  • Ortega, Josué, 2019. "The losses from integration in matching markets can be large," Economics Letters, Elsevier, vol. 174(C), pages 48-51.
    • Handle: RePEc:eee:ecolet:v:174:y:2019:i:c:p:48-51
    DOI: 10.1016/j.econlet.2018.10.028
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    References listed on IDEAS

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    1. Yinghua He & Antonio Miralles & Marek Pycia & Jianye Yan, 2018. "A Pseudo-Market Approach to Allocation with Priorities," American Economic Journal: Microeconomics, American Economic Association, vol. 10(3), pages 272-314, August.
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    6. Ortega, Josué, 2018. "Social integration in two-sided matching markets," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 119-126.
    7. Sprumont, Yves, 1990. "Population monotonic allocation schemes for cooperative games with transferable utility," Games and Economic Behavior, Elsevier, vol. 2(4), pages 378-394, December.
    8. Vicki Knoblauch, 2009. "Marriage matching and gender satisfaction," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(1), pages 15-27, January.
    9. Kojima, Fuhito & Manea, Mihai, 2010. "Incentives in the probabilistic serial mechanism," Journal of Economic Theory, Elsevier, vol. 145(1), pages 106-123, January.
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    Cited by:

    1. Ortega, Josué & Klein, Thilo, 2023. "The cost of strategy-proofness in school choice," Games and Economic Behavior, Elsevier, vol. 141(C), pages 515-528.
    2. Shiying Hou & Liangrong Song, 2021. "Market Integration and Regional Green Total Factor Productivity: Evidence from China’s Province-Level Data," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    3. Bhardwaj, Bhavook & Kumar, Rajnish & Ortega, Josué, 2020. "Fairness and efficiency in cake-cutting with single-peaked preferences," Economics Letters, Elsevier, vol. 190(C).
    4. Gersbach, Hans & Haller, Hans, 2022. "Gainers and losers from market integration," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 32-39.
    5. Kumar, Rajnish & Manocha, Kriti & Ortega, Josué, 2022. "On the integration of Shapley–Scarf markets," Journal of Mathematical Economics, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Social integration; Large matching markets; Spouse ranking; Assignment schemes; Replica economies;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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