Stability and efficiency in decentralized two-sided markets with weak preferences / by Radoslav S. Raykov. : FB3-5/2017-4E-PDF
"Many decentralized markets are able to attain a stable outcome despite the absence of acentral authority. A stable matching, however, need not be efficient if preferences are weak. This raises the question whether a decentralized market with weak preferences can attain Pareto efficiency in the absence of a central matchmaker. I show that when agent tastes are independent, the random stable match in a large-enough market is asymptotically Pareto efficient even with weak preferences. In fact, even moderate-sized markets can attain good efficiency levels. The average fraction of agents who can Pareto improve is below 10% in a market of size n = 79 when one side of the market has weak preferences; when both sides have weak preferences, the inefficiency falls below 10% for n > 158. This implies that approximate Pareto efficiency is attainable in a decentralized market even in the absence of a central matchmaker"--Abstract, p. ii.
Lien permanent pour cette publication :
publications.gc.ca/pub?id=9.833265&sl=1
Ministère/Organisme | Bank of Canada. |
---|---|
Titre | Stability and efficiency in decentralized two-sided markets with weak preferences / by Radoslav S. Raykov. |
Titre de la série | Bank of Canada staff working paper, 1701-9397 ; 2017-4 |
Type de publication | Série - Voir l'enregistrement principal |
Langue | [Anglais] |
Format | Électronique |
Document électronique | |
Note(s) | "February 2017." Includes bibliographical references. Includes abstract in French. |
Information sur la publication | [Ottawa] : Bank of Canada, 2017. |
Auteur / Contributeur | Raykov, Radoslav S. |
Description | ii, 36 p. |
Numéro de catalogue |
|
Descripteurs | Markets Modelling |