Social and Information Sciences Laboratory (SISL) Seminar
Abstract: I study dynamic matching markets where matching opportunities arrive over time, matching is one-to-one and irreversible. I propose a stability notion, dynamic stability, which accommodates the trade-off between matching and waiting for a better match. Underlying the definition is the notion that the endogenous evolution of the pool of market participants embodies an externality for the continuation economy. Dynamically stable matchings exist. I show that mechanisms that implement dynamically stable matchings address a novel kind of strategy-proofness: market participants have an incentive to truthfully report the time at which they arrive in the market.