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arXiv · 1810.10287

The Losses from Integration in Matching Markets can be Large

Josué Ortega
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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.

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Josué Ortega. 2018-10-24. The Losses from Integration in Matching Markets can be Large. https://doi.org/10.1016/j.econlet.2018.10.028

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