An experimental study on decentralized networked markets

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2018
Volume: 145
Issue: C
Pages: 567-591

Authors (2)

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 design a laboratory experiment to investigate matching in a decentralized market of deferred acceptance. Agents are undifferentiated and may have multiple partners; their payoff depends on who they match with. The experiment is designed in such a way that a stable configuration exists, but cannot be eyeballed by the participants due to the computational complexity of the game. In spite of this, subjects are remarkably good at reaching a stable match, even when the payoffs of others are not publicly observed. More information does, however, speed up convergence thanks to self-censoring. We trace irrational matching choices mostly to two sources: the tendency of over-think in a setting where strategic thinking is not necessary, and the reluctance to accept matching offers from those who have been disloyal in the past.

Technical Details

RePEc Handle
repec:eee:jeborg:v:145:y:2018:i:c:p:567-591
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25