Economic Theory Seminar Series - Antonio Nicolo (University of Padova)

Title: Rationalizable Conjectures in Dynamic Matching

Abstract: We study a dynamic two-sided matching market in which agents enter over time and remain in the market until they find a match or time expires. Agents who remain unmatched, aiming to secure a better match in the future, form conjectures about the allocations that ultimately will occur. We introduce a procedure to restrict the set of agents’ conjectures which resembles the game-theoretic notion of rationalizability. We propose a new notion of dynamic stability, supported by agents’ rationalizable conjectures. We demonstrate that this notion is always non-empty and it refines previous dynamic stability notions.