Matching Markets via Descending Price
16 Pages Posted: 17 May 2019
Date Written: April 17, 2019
A market for matching participants with each other, such as buyers and sellers of labor, faces two challenges: efficiently coordinating information acquisition processes such as job interviews; and efficiently coordinating high-value matches. We propose a general descending-price market design called the Marshallian Match. In contrast to existing ascending or deferred-acceptance style proposals, the descending-price design is compatible with optimal search theory, allowing it to address both challenges.
Keywords: matching markets, descending price, market design, mechanism design
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