Strategic disaggregation in matching markets

• 成果类型: Article
• 署名作者: Nei, Stephen; Pakzad-Hurson, Bobak
• 署名单位: University of Exeter; Brown University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2021.105329
• 发表日期: 2021
• 关键词: Matching with contracts; college admissions; Athletic scholarships

摘要

Decisions agents make before and after matching can be strategically linked through the match. We demonstrate this linkage in a game where universities either require students to commit to majors before matriculating or allow students to pick majors during their studies. The interaction between matching forces (competition for higher quality students) and principal-agent forces (moral hazard and adverse selection) leads to two equilibria that mirror the admissions systems in the US and England. With monetary transfers, our model provides insights into athletic scholarships. Payment caps that restrict transfers to potential athletes who decide not to play sports can maximize welfare. (c) 2021 Elsevier Inc. All rights reserved.