Dynamic matching games: stationary equilibria under varying commitments

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Main Authors: Guiñazú, Nadia, Neme, Pablo, Oviedo, Jorge
Format: Preprint
Published: 2024
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_version_ 1866912137097510912
author Guiñazú, Nadia
Neme, Pablo
Oviedo, Jorge
author_facet Guiñazú, Nadia
Neme, Pablo
Oviedo, Jorge
contents This paper examines equilibria in dynamic two-sided matching games, extending Gale and Shapley's foundational model to a non-cooperative, decentralized, and dynamic framework. We focus on markets where agents have utility functions and commitments vary. Specifically, we analyze a dynamic matching game in which firms make offers to workers in each period, considering three types of commitment: (i) no commitment from either side, (ii) firms' commitment, and (iii) workers' commitment. Our results demonstrate that stable matchings can be supported as stationary equilibria under different commitment scenarios, depending on the strategies adopted by firms and workers. Furthermore, we identify key conditions, such as discount factors, that influence agents' decisions to switch partners, thereby shaping equilibrium outcomes.
format Preprint
id arxiv_https___arxiv_org_abs_2411_19372
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Dynamic matching games: stationary equilibria under varying commitments
Guiñazú, Nadia
Neme, Pablo
Oviedo, Jorge
Theoretical Economics
C78, D47
This paper examines equilibria in dynamic two-sided matching games, extending Gale and Shapley's foundational model to a non-cooperative, decentralized, and dynamic framework. We focus on markets where agents have utility functions and commitments vary. Specifically, we analyze a dynamic matching game in which firms make offers to workers in each period, considering three types of commitment: (i) no commitment from either side, (ii) firms' commitment, and (iii) workers' commitment. Our results demonstrate that stable matchings can be supported as stationary equilibria under different commitment scenarios, depending on the strategies adopted by firms and workers. Furthermore, we identify key conditions, such as discount factors, that influence agents' decisions to switch partners, thereby shaping equilibrium outcomes.
title Dynamic matching games: stationary equilibria under varying commitments
topic Theoretical Economics
C78, D47
url https://arxiv.org/abs/2411.19372