Stability in Repeated Matching Markets

Ce Liu

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arXiv · 2007.03794

Stability in Repeated Matching Markets

Ce Liu

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Abstract

This paper develops a framework for repeated matching markets. The model departs from the Gale-Shapley matching model by having a fixed set of long-lived hospitals match with a new generation of short-lived residents in every period. I show that there are two kinds of hospitals in this repeated environment: some hospitals can be motivated dynamically to voluntarily reduce their hiring capacity, potentially making more residents available to rural hospitals; the others, however, are untouchable even with repeated interaction and must obtain the same match as they do in a static matching. In large matching markets with correlated preferences, at most a vanishingly small fraction of the hospitals are untouchable. The vast majority of hospitals can be motivated using dynamic incentives.

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econ.TH cs.GT

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Ce Liu. 2020-07-07. Stability in Repeated Matching Markets. https://arxiv.org/abs/2007.03794

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