Assignment Problems with Complementarities

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One-Sided Matching with Limited Complementarities

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(Krannert School of Management, Purdue University)

(Department of Economics, Northwestern University)

(Department of Economics, University of Pennsylvania)

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International Symposium on Algorithmic Game Theory

SAGT 2011: Algorithmic Game Theory pp 117–129 Cite as

Peer Effects and Stability in Matching Markets

  • Elizabeth Bodine-Baron 17 ,
  • Christina Lee 17 ,
  • Anthony Chong 17 ,
  • Babak Hassibi 17 &
  • Adam Wierman 17  
  • Conference paper

1788 Accesses

129 Citations

Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 6982))

Many-to-one matching markets exist in numerous different forms, such as college admissions, matching medical interns to hospitals for residencies, assigning housing to college students, and the classic firms and workers market. In all these markets, externalities such as complementarities and peer effects severely complicate the preference ordering of each agent. Further, research has shown that externalities lead to serious problems for market stability and for developing efficient algorithms to find stable matchings. In this paper we make the observation that peer effects are often the result of underlying social connections, and we explore a formulation of the many-to-one matching market where peer effects are derived from an underlying social network. The key feature of our model is that it captures peer effects and complementarities using utility functions, rather than traditional preference ordering. With this model and considering a weaker notion of stability, namely two-sided exchange stability, we prove that stable matchings always exist and characterize the set of stable matchings in terms of social welfare. To characterize the efficiency of matching markets with externalities, we provide general bounds on how far the welfare of the worst-case stable matching can be from the welfare of the optimal matching, and find that the structure of the social network (e.g. how well clustered the network is) plays a large role.

This work was supported in part by the National Science Foundation under grants CCF-0729203, CNS-0932428 and CCF-1018927, by the Office of Naval Research under the MURI grant N00014-08-1-0747, and by Caltech’s Lee Center for Advanced Networking.

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Elizabeth Bodine-Baron, Christina Lee, Anthony Chong, Babak Hassibi & Adam Wierman

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Bodine-Baron, E., Lee, C., Chong, A., Hassibi, B., Wierman, A. (2011). Peer Effects and Stability in Matching Markets. In: Persiano, G. (eds) Algorithmic Game Theory. SAGT 2011. Lecture Notes in Computer Science, vol 6982. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-24829-0_12

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  1. PDF Assignment Problems with Complementarities

    The problem of allocating bundles of indivisible objects without transfers arises in many practical settings, including the assignment of courses to students, of siblings to schools, and of truckloads of food to food banks. In these settings, the complementarities in preferences are small compared with the size of the market.

  2. Assignment problems with complementarities

    The problem of allocating bundles of indivisible objects without transfers arises in many practical settings, including the assignment of courses to students, of siblings to schools, and of truckloads of food to food banks. In these settings, the complementarities in preferences are small compared with the size of the market. We exploit this to design mechanisms satisfying constrained ...

  3. Assignment Problems with Complementarities

    The problem of allocating bundles of indivisible objects without transfers arises in the assignment of courses to students, of computing resources like CPU time, memory and disk space to computing tasks and the truck loads of food to food banks. In these settings the complementarities in preferences are small compared with the size of the market.

  4. Assignment problems with complementarities

    The problem of allocating bundles of indivisible objects without transfers arises in many practical settings, including the assignment of courses to students, of siblings to schools, and of truckloads of food to food banks. In these settings, the complementarities in preferences are small compared with the size of the market.

  5. [PDF] Assignment Problems with Complementarities

    The problem of allocating bundles of indivisible objects without transfers arises in many practical settings, including the assignment of courses to students, of siblings to schools, and of truckloads of food to food banks. In these settings, the complementarities in preferences are small compared with the size of the market.

  6. Assignment Problems with Complementarities

    For example, for the combinatorial assignment problem with limited complementarities, Nguyen et al. (2016) show that one can always decompose a feasible random assignment into a lottery over ...

  7. PDF Econometric methods for the analysis of assignment problems in the

    Assignment problems have been widely studied by economists as well as those in opera-tions research (e.g., Koopmans and Beckmann, 1957; Gale, 1960; Roth and Sotomayor, 1990; Burkard, Dell'Amico and Martello, 2009). Adding statistical content to these problems in a manageable way is nontrivial. Doing so raises a number of interesting and ...

  8. Assignment problems with complementarities

    Assignment problems with complementarities. Thành Nguyen, Ahmad Peivandi and Rakesh Vohra. Journal of Economic Theory, 2016, vol. 165, issue C, 209-241 . Abstract: The problem of allocating bundles of indivisible objects without transfers arises in many practical settings, including the assignment of courses to students, of siblings to schools, and of truckloads of food to food banks.

  9. Assignment Problems with Complementarities

    Assignment Problems with Complementarities∗ Thành Nguyen†, Ahmad Peivandi‡, Rakesh Vohra§ November 2015 Abstract The problem of allocating bundles of indivisible objects without transfers arises in many practical settings, including the assignment of courses to students, of siblings to schools, and of truckloads of food to food banks.

  10. PDF 7.13 Assignment Problem

    Equivalent Assignment Problem c(x, y) 00312 01015 43330 00110 12204 cp(x, y) 3891510 41071614 913111910 813122013 175119 8 13 11 19 13 5 4 3 0 8 9 + 8 - 13 10 Reduced costs. For x # X, y # Y, define cp(x, y) = p(x) + c(x, y) - p(y). Observation 1. Finding a min cost perfect matching with reduced costs

  11. PDF The Combinatorial Assignment Problem: Approximate

    This combinatorial assignment problem4 (or course-allocation problem) is one feature removed ... (Steinhaus, 1948) to accomodate environments with indivisibilities and complementarities. An allocation satis-es the maximin share guarantee if all agents obtain a bundle they weakly prefer to their maximin share. An allocation satis-es envy ...

  12. PDF arXiv:1104.0052v3 [cs.SI] 22 Jul 2011

    additional complementarities due to goals such as maintaining diversity. It is clear that some form of stability is a key goal of this \housing assignment" problem. Notation for many-to-one matchings Using the language of the housing assignment problem, we de ne two nite and disjoint sets, H= fh 1;:::;h mg and S= fs 1;:::;s

  13. PDF Complementarities and Externalities

    Complementarities and Externalities Th anh Nguyen and Rakesh Vohray February 24, 2022 ... David Gale and Lloyd Shapley formulated the problem of nding a stable match- ... The third is establishing the existence of 'stable' fractional assignments. The connection to stability has been neglected, perhaps, because the study of NTU ...

  14. One-Sided Matching with Limited Complementarities

    Downloadable! The problem of allocating bundles of indivisible objects without transfers arises in the assignment of courses to students, of computing resources like CPU time, memory and disk space to computing tasks and the truck loads of food to food banks. In these settings the complementarities in preferences are small compared with the size of the market.

  15. PDF The Combinatorial Assignment Problem: Approximate Competitive

    There are two basic challenges in adapting CEEI to the problem of combinatorial assignment 1. CEEI prices need not exist I Either indivisibilities or complementarities alone complicate existence. Our economy features both. 2. The fairness criteria at the heart of the argument for CEEI are either unde-ned or unrealistic in our environment

  16. Stability in Large Matching Markets with Complementarities

    It is well known that if complementarities are present in such markets, a stable matching may not exist. We study large random matching markets with couples. We introduce a new matching algorithm and show that if the number of couples grows slower than the size of the market, a stable matching will be found with high probability. If however ...

  17. PDF Peer Effects and Stability in Matching Markets

    California Institute of Technology, Pasadena, CA 91125, USA. {eabodine,chlee,anthony,hassibi,adamw}@caltech.edu. Abstract. Many-to-one matching markets exist in numerous different forms, such as college admissions, matching medical interns to hospitals for residencies, assigning housing to college students, and the classic and workers market.

  18. PDF Rakesh V. Vohra

    Assignment Problems with Complementarities, Journal of Economic Theory, vol. 165, 209-241, 2016 (with Th anh Nguyen and Ahmad Peivandi). 10. Just Enough or All: Selling a Firm, American Economic Journal: Microeconomics, vol. 8 (3), 223-256, 2016 (with Mehmet Ekmekci and Nenad Kos ).

  19. PDF Complementarities and Games: New Developments

    problems in macroeconomics and finance to pricing and product selection issues in industrial organization. At the heart of complementarity is the notion, due to Edgeworth, that the marginal value of an action or variable increases in the level of another action or variable. Complementarities have been a recurrent and somewhat contentious topic ...

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    This problem that comes with multiple biases is reminiscent of the Anna Karenina principle, which states that failure in just one factor out ... Treatment assignment was randomized and the group sizes are as follows: 82 in CON, 88 in SER, 90 in RTF, 91 in DUAL. 13. ... Our theoretical framework predicts that complementarities should become more ...

  21. complementation problems

    Complementation problems >> Notes. State the number of complementation groups (different gene loci) in each set of crosses, and which strains contain defective alleles for the same locus. (-) means failure to complement; (+) means complementation, restoration of function.

  22. Externalities and complementarities in platforms and ecosystems: From

    Jacobides et al. (2018) focus on the reasons why such alignment structures emerge, highlighting the role of modularity and, perhaps more importantly, the nature and strength of complementarities as defining features. 5 This view is shared by Baldwin, 2022, who claims that "for an ecosystem to be sustained, the complementarities among products ...

  23. MEOA: 7. Decision Rights: Bundling Tasking into Jobs and Subunits

    Study with Quizlet and memorize flashcards containing terms like Specialized task assignment, Broad task assignment, Benefits of specialized task assignment and more. ... (sales only looks for sales, even if the sale imposes large service costs) - foregone complementarities across tasks - coordination costs --> transferring informations between ...