Application Costs and Congestion in Matching Markets

A-Tier
Journal: Economic Journal
Year: 2022
Volume: 132
Issue: 648
Pages: 2918-2950

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A matching market often requires recruiting agents, or ‘programmes’, to costly screen ‘applicants’, and congestion increases with the number of applicants to be screened. We investigate the role of application costs: higher costs reduce congestion by discouraging applicants from applying to certain programmes; however, they may harm match quality. In a multiple-elicitation experiment conducted in a real-life matching market, we implement variants of the Gale-Shapley deferred-acceptance mechanism with different application costs. Our experimental and structural estimates show that a (low) application cost effectively reduces congestion without harming match quality.

Technical Details

RePEc Handle
repec:oup:econjl:v:132:y:2022:i:648:p:2918-2950.
Journal Field
General
Author Count
2
Added to Database
2026-01-25