Preference Evolution in Different Matching Markets

Abstract

We examine preference evolution under different matching market arrangements, when preferences are influenced by own choices and parental preferences. The dynamical system exhibits pitchfork bifurcation as the degree of sorting varies: Multiple stable equilibria arise under sufficiently random matching, but a unique equilibrium exists under sufficiently assortative matching. Market-differential evolutionary trajectories after transitory and permanent shocks allow us to shed light on a wide range of social phenomena.

Keywords: preference evolution, matching market, evolutionary games, pitchfork bifurcation

JEL Classification: C73, C78, Z13