English

Dynamic Matching Markets and the Deferred Acceptance Mechanism

In many dynamic matching markets, priorities depend on previous allocations. In such environments, agents on the proposing side can manipulate the period-by-period deferred acceptance (DA) mechanism. We show that the fraction of agents with incentives to manipulate the DA mechanism approaches zero as the market size increases. In addition, we provide a novel algorithm to calculate the percentage of markets that can be manipulated. Based on randomly generated data, we find that the DA becomes approximately non-manipulable when the schools capacity reaches 20. Our theoretical and simulation results together justify the implementation of the period-by-period DA mechanism in dynamic markets.

Sao Paulo School of Economics
Wednesday, April 6, 2016 - 12:00
Location: 
Sala de Asamblea, Beauchef 851, floor 4