Monotone Equilibrium in Matching Markets with Signaling

Fuente: arXiv
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Autores principales: Han, Seungjin, Sam, Alex, Shin, Youngki
Formato: Preprint
Publicado: 2021
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author Han, Seungjin
Sam, Alex
Shin, Youngki
author_facet Han, Seungjin
Sam, Alex
Shin, Youngki
contents We introduce a notion of competitive signaling equilibrium (CSE) in one-to-one matching markets with a continuum of heterogeneous senders and receivers. We then study monotone CSE where equilibrium outcomes - sender actions, receiver reactions, beliefs, and matching - are all monotone in the stronger set order. We show that if the sender utility is monotone-supermodular and the receiver's utility is weakly monotone-supermodular, a CSE is stronger monotone if and only if it passes Criterion D1 (Cho and Kreps (1987), Banks and Sobel (1987)). Given any interval of feasible reactions that receivers can take, we fully characterize a unique stronger monotone CSE and establishes its existence with quasilinear utility functions.
format Preprint
id arxiv_https___arxiv_org_abs_2109_03370
institution arXiv
publishDate 2021
record_format arxiv
spellingShingle Monotone Equilibrium in Matching Markets with Signaling
Han, Seungjin
Sam, Alex
Shin, Youngki
Theoretical Economics
We introduce a notion of competitive signaling equilibrium (CSE) in one-to-one matching markets with a continuum of heterogeneous senders and receivers. We then study monotone CSE where equilibrium outcomes - sender actions, receiver reactions, beliefs, and matching - are all monotone in the stronger set order. We show that if the sender utility is monotone-supermodular and the receiver's utility is weakly monotone-supermodular, a CSE is stronger monotone if and only if it passes Criterion D1 (Cho and Kreps (1987), Banks and Sobel (1987)). Given any interval of feasible reactions that receivers can take, we fully characterize a unique stronger monotone CSE and establishes its existence with quasilinear utility functions.
title Monotone Equilibrium in Matching Markets with Signaling
topic Theoretical Economics
url https://arxiv.org/abs/2109.03370