Truncation strategies in two-sided matching markets: Theory and experiment

B-Tier
Journal: Games and Economic Behavior
Year: 2016
Volume: 98
Issue: C
Pages: 180-196

Authors (2)

Castillo, Marco (Texas A&M University) Dianat, Ahrash (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We investigate strategic behavior in a centralized matching clearinghouse based on the Gale–Shapley deferred acceptance algorithm. To do so, we conduct a laboratory experiment to test the degree to which agents strategically misrepresent their preferences by submitting a “truncation” of their true preferences. Our experimental design uses a restricted environment in which a particular form of truncation is always a best response. We find that subjects do not truncate their preferences more often when truncation is profitable. They do, however, truncate their preferences less often when truncation is dangerous – that is, when there is a risk of “over-truncating” and remaining unmatched. Our findings suggest that behavioral insights can play an important role in the field of market design.

Technical Details

RePEc Handle
repec:eee:gamebe:v:98:y:2016:i:c:p:180-196
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25