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Assortative Matching by Lottery Contests

Author

Listed:
  • Chen Cohen

    (Department of Public Policy and Administration, Guilford Glazer Faculty of Business and Management, Ben-Gurion University of the Negev, Beer Sheva 84105, Israel)

  • Ishay Rabi

    (Department of Economics, Ben-Gurion University of the Negev, Beer Sheva 84105, Israel)

  • Aner Sela

    (Department of Economics, Ben-Gurion University of the Negev, Beer Sheva 84105, Israel)

Abstract
We study two-sided matching contests with two sets, A and B , each of which includes a finite number of heterogeneous agents with commonly known types. The agents in each set compete in a lottery (Tullock) contest, and then are assortatively matched, namely, the winner of set A is matched with the winner of set B and so on until all the agents in the set with the smaller number of agents are matched. Each agent has a match value that depends on their own type and the type of their match. We assume that the agents’ efforts do not affect their match values and that they have a positive effect on welfare. Therefore, an interior equilibrium in which at least some of the agents are active is welfare superior to a corner equilibrium in which the agents choose to be non-active. We analyze the conditions under which there exists a (partial) interior equilibrium where at least some of the agents compete against each other and exert positive efforts.

Suggested Citation

  • Chen Cohen & Ishay Rabi & Aner Sela, 2022. "Assortative Matching by Lottery Contests," Games, MDPI, vol. 13(5), pages 1-20, September.
    • Handle: RePEc:gam:jgames:v:13:y:2022:i:5:p:64-:d:929613
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    References listed on IDEAS

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    Cited by:

    1. Theofanis Tsoulouhas, 2023. "Advances in the Theory and Applications of Contests and Tournaments: Introduction to the Special Issue," Games, MDPI, vol. 14(2), pages 1-3, March.

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    Keywords

    two-sided matching; Tullock contest;

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