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Social Integration in Two-Sided Matching Markets

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  • Josue Ortega
Abstract
When several two-sided matching markets merge into one, it is inevitable that some agents will become worse off if the matching mechanism used is stable. I formalize this observation by defining the property of integration monotonicity, which requires that every agent becomes better off after any number of matching markets merge. Integration monotonicity is also incompatible with the weaker efficiency property of Pareto optimality. Nevertheless, I obtain two possibility results. First, stable matching mechanisms never hurt more than one-half of the society after the integration of several matching markets occurs. Second, in random matching markets there are positive expected gains from integration for both sides of the market, which I quantify.

Suggested Citation

  • Josue Ortega, 2017. "Social Integration in Two-Sided Matching Markets," Papers 1705.08033, arXiv.org, revised Jul 2018.
  • Handle: RePEc:arx:papers:1705.08033
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Josu'e Ortega, 2018. "The Losses from Integration in Matching Markets can be Large," Papers 1810.10287, arXiv.org.
    2. Gersbach, Hans & Haller, Hans, 2022. "Gainers and losers from market integration," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 32-39.
    3. Mei, Jie & Chen, Chen & Wang, Jianhui & Kirtley, James L., 2019. "Coalitional game theory based local power exchange algorithm for networked microgrids," Applied Energy, Elsevier, vol. 239(C), pages 133-141.
    4. Ortega, Josué, 2019. "The losses from integration in matching markets can be large," Economics Letters, Elsevier, vol. 174(C), pages 48-51.
    5. Aue, Robert & Klein, Thilo & Ortega, Josué, 2020. "What Happens when Separate and Unequal School Districts Merge?," QBS Working Paper Series 2020/06, Queen's University Belfast, Queen's Business School.
    6. Fisher, James C.D., 2020. "Existence of stable allocations in matching markets with infinite contracts: A topological approach," Journal of Mathematical Economics, Elsevier, vol. 91(C), pages 136-140.
    7. Thilo Klein & Robert Aue & Josue Ortega, 2020. "School choice with independent versus consolidated districts," Papers 2006.13209, arXiv.org, revised Jul 2024.
    8. Erel Segal-Halevi & Shmuel Nitzan, 2019. "Fair cake-cutting among families," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(4), pages 709-740, December.
    9. Ortega, Josué & Klein, Thilo, 2023. "The cost of strategy-proofness in school choice," Games and Economic Behavior, Elsevier, vol. 141(C), pages 515-528.
    10. Rajnish Kunar & Kriti Manocha & Josue Ortega, 2020. "On the integration of Shapley-Scarf housing markets," Papers 2004.09075, arXiv.org, revised Jan 2022.
    11. Bhardwaj, Bhavook & Kumar, Rajnish & Ortega, Josué, 2020. "Fairness and efficiency in cake-cutting with single-peaked preferences," Economics Letters, Elsevier, vol. 190(C).
    12. Kumar, Rajnish & Manocha, Kriti & Ortega, Josué, 2022. "On the integration of Shapley–Scarf markets," Journal of Mathematical Economics, Elsevier, vol. 100(C).
    13. Josue Ortega & Philipp Hergovich, 2017. "The Strength of Absent Ties: Social Integration via Online Dating," Papers 1709.10478, arXiv.org, revised Sep 2018.
    14. Takaaki Abe & Shuige Liu, 2019. "Monotonic core allocation paths for assignment games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(4), pages 557-573, December.
    15. Bykhovskaya, Anna, 2020. "Stability in matching markets with peer effects," Games and Economic Behavior, Elsevier, vol. 122(C), pages 28-54.
    16. Hadi Hosseini & Andrew Searns, 2021. "Guaranteeing Maximin Shares: Some Agents Left Behind," Papers 2105.09383, arXiv.org.

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