Respect for Improvements and Comparative Statics in Matching Markets

One of the oldest results in the theory of two-sided matching is the entry comparative static, which shows that under the Gale-Shapley deferred acceptance algorithm, adding a new agent to one side of the market makes all the agents on the other side weakly better off. Here, we give a new proof of th...

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Main Author: Scott Duke Kominers
Format: Article
Language:English
Published: Society for the Promotion of Mechanism and Institution Design 2024-12-01
Series:Journal of Mechanism and Institution Design
Subjects:
Online Access: http://www.mechanism-design.org/arch/v009-1/p_05.pdf
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author Scott Duke Kominers
author_facet Scott Duke Kominers
author_sort Scott Duke Kominers
collection DOAJ
description One of the oldest results in the theory of two-sided matching is the entry comparative static, which shows that under the Gale-Shapley deferred acceptance algorithm, adding a new agent to one side of the market makes all the agents on the other side weakly better off. Here, we give a new proof of the entry comparative static, by way of a well-known property of deferred acceptance called respect for improvements. Our argument extends to yield comparative static results in more general settings, such as matching with slot-specific preferences.
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publisher Society for the Promotion of Mechanism and Institution Design
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spelling doaj-art-3cec3926d0434b3798a26e4dc7df329a2025-08-20T02:36:15ZengSociety for the Promotion of Mechanism and Institution DesignJournal of Mechanism and Institution Design2399-844X2399-84582024-12-01918310410.22574/jmid.2024.12.005jmi-v9i1a5Respect for Improvements and Comparative Statics in Matching MarketsScott Duke Kominers0 Harvard University and a16z crypto, USA One of the oldest results in the theory of two-sided matching is the entry comparative static, which shows that under the Gale-Shapley deferred acceptance algorithm, adding a new agent to one side of the market makes all the agents on the other side weakly better off. Here, we give a new proof of the entry comparative static, by way of a well-known property of deferred acceptance called respect for improvements. Our argument extends to yield comparative static results in more general settings, such as matching with slot-specific preferences. http://www.mechanism-design.org/arch/v009-1/p_05.pdf matchingmarket entryrespect for improvements
spellingShingle Scott Duke Kominers
Respect for Improvements and Comparative Statics in Matching Markets
Journal of Mechanism and Institution Design
matching
market entry
respect for improvements
title Respect for Improvements and Comparative Statics in Matching Markets
title_full Respect for Improvements and Comparative Statics in Matching Markets
title_fullStr Respect for Improvements and Comparative Statics in Matching Markets
title_full_unstemmed Respect for Improvements and Comparative Statics in Matching Markets
title_short Respect for Improvements and Comparative Statics in Matching Markets
title_sort respect for improvements and comparative statics in matching markets
topic matching
market entry
respect for improvements
url http://www.mechanism-design.org/arch/v009-1/p_05.pdf
work_keys_str_mv AT scottdukekominers respectforimprovementsandcomparativestaticsinmatchingmarkets