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 |
Demander des formats alternatifs
Pour demander une publication dans un format alternatif, remplissez le formulaire électronique des publications du gouvernement du Canada. Utilisez le champ du formulaire «question ou commentaire» pour spécifier la publication demandée.- Date de modification :