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Interviewing in Two-Sided Matching Markets

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  • Robin S. Lee
  • Michael Schwarz
Abstract
We introduce the interview assignment problem, which generalizes the one-to-one matching model of Gale and Shapley (1962) by introducing a stage of costly information acquisition. Firms learn preferences over workers via costly interviews. Even if all firms and workers conduct the same number of interviews, realized unemployment depends also on the extent to which agents share common interviewing partners. We introduce the concept of overlap that captures this notion, and prove that unemployment is minimized with perfect overlap: i.e., if two firms interview any common worker, they interview the exact same set of workers.

Suggested Citation

  • Robin S. Lee & Michael Schwarz, 2009. "Interviewing in Two-Sided Matching Markets," NBER Working Papers 14922, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14922
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Artemov, Georgy, 2021. "Assignment mechanisms: Common preferences and information acquisition," Journal of Economic Theory, Elsevier, vol. 198(C).
    2. YingHua He & Thierry Magnac, 2022. "Application Costs and Congestion in Matching Markets," The Economic Journal, Royal Economic Society, vol. 132(648), pages 2918-2950.
    3. Rustamdjan Hakimov & Dorothea Kübler & Siqi Pan, 2023. "Costly information acquisition in centralized matching markets," Quantitative Economics, Econometric Society, vol. 14(4), pages 1447-1490, November.
    4. Coles, Peter & Shorrer, Ran, 2014. "Optimal truncation in matching markets," Games and Economic Behavior, Elsevier, vol. 87(C), pages 591-615.
    5. Laschever, Ron A. & Weinstein, Russell, 2021. "Preference Signaling and Worker-Firm Matching: Evidence from Interview Auctions," IZA Discussion Papers 14622, Institute of Labor Economics (IZA).
    6. Itay P. Fainmesser, 2012. "Community Structure and Market Outcomes: A Repeated Games-in-Networks Approach," American Economic Journal: Microeconomics, American Economic Association, vol. 4(1), pages 32-69, February.
    7. Chhabra, Meenal & Das, Sanmay & Sarne, David, 2014. "Expert-mediated sequential search," European Journal of Operational Research, Elsevier, vol. 234(3), pages 861-873.
    8. Maxwell Allman & Itai Ashlagi, 2023. "Interviewing Matching in Random Markets," Papers 2305.11350, arXiv.org, revised Sep 2023.
    9. Maxey, Tyler, 2024. "School choice with costly information acquisition," Games and Economic Behavior, Elsevier, vol. 143(C), pages 248-268.
    10. He, Yinghua & Magnac, Thierry, 2018. "A Pigouvian Approach to Congestion in Matching Markets," IZA Discussion Papers 11967, Institute of Labor Economics (IZA).
    11. Wang, Zhihong & Li, Yangyang & Gu, Fu & Guo, Jianfeng & Wu, Xiaojun, 2020. "Two-sided matching and strategic selection on freight resource sharing platforms," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 559(C).
    12. , C. & ,, 2013. "Adverse selection and unraveling in common-value labor markets," Theoretical Economics, Econometric Society, vol. 8(3), September.
    13. Itai Ashlagi & Mark Braverman & Yash Kanoria & Peng Shi, 2020. "Clearing Matching Markets Efficiently: Informative Signals and Match Recommendations," Management Science, INFORMS, vol. 66(5), pages 2163-2193, May.

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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