Two-Sided Matching via Balanced Exchange

S-Tier
Journal: Journal of Political Economy
Year: 2019
Volume: 127
Issue: 3
Pages: 1156 - 1177

Authors (2)

Umut Mert Dur (not in RePEc) M. Utku Ünver (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We introduce a new matching model to mimic two-sided exchange programs such as tuition and worker exchanges, in which export-import balances are required for longevity of programs. These exchanges use decentralized markets, making it difficult to achieve this goal. We introduce the two-sided top trading cycles, the unique mechanism that is balanced-efficient, worker-strategy-proof, acceptable, individually rational, and respecting priority bylaws regarding worker eligibility. Moreover, it encourages exchange, because full participation induces a dominant-strategy equilibrium for firms. We extend it to dynamic settings permitting tolerable yearly imbalances and demonstrate that its regular and tolerable versions perform considerably better than models of current practice.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/701358
Journal Field
General
Author Count
2
Added to Database
2026-01-25