Open AccessDynamically stable matching
Author(s) -
Doval Laura
Publication year - 2022
Publication title -
theoretical economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.404
H-Index - 32
eISSN - 1555-7561
pISSN - 1933-6837
DOI - 10.3982/te4187
Subject(s) - matching (statistics) , externality , stochastic game , stability (learning theory) , computer science , blocking (statistics) , mathematical economics , mathematical optimization , microeconomics , economics , mathematics , computer network , statistics , machine learning
I introduce a stability notion, dynamic stability , for two‐sided dynamic matching markets where (i) matching opportunities arrive over time, (ii) matching is one‐to‐one, and (iii) matching is irreversible. The definition addresses two conceptual issues. First, since not all agents are available to match at the same time, one must establish which agents are allowed to form blocking pairs. Second, dynamic matching markets exhibit a form of externality that is not present in static markets: an agent's payoff from remaining unmatched cannot be defined independently of other contemporaneous agents' outcomes. Dynamically stable matchings always exist. Dynamic stability is a necessary condition to ensure timely participation in the economy by ensuring that agents do not strategically delay the time at which they are available to match.