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- Title
Matching markets and cultural selection.
- Authors
Wu, Jiabin
- Abstract
We study the implications of two different matching mechanisms: bargaining in match (BIM) and binding agreement in the matching market (BAMM) in the context of cultural selection. Under BIM, matching across cultures is not operated through a well-regulated market, where agents' payoffs are not determined by the market but through negotiation with their matched partners. Under BAMM, matching across cultures is operated through a formal market in which agents make binding agreements. We show that BIM results in inefficiency through cultural selection and possibly leads to assimilation, while BAMM restores efficiency and ensures cultural heterogeneity. The findings highlight the importance of regulating the matching market for multi-cultural societies.
- Subjects
BINDING agents; MARKETING agreements; GAME theory
- Publication
Review of Economic Design, 2021, Vol 25, Issue 4, p267
- ISSN
1434-4742
- Publication type
Article
- DOI
10.1007/s10058-021-00249-4