The losses from integration in matching markets can be large

Refereed Journal // 2019
Refereed Journal // 2019

The losses from integration in matching markets can be large

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.

Ortega, Josué (2019), The losses from integration in matching markets can be large, Economics Letters 174 , 48-51

Authors Josué Ortega