Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jan, 1999, Volume 67, Issue 1

Truncation Strategies in Matching Markets—in Search of Advice for Participants

https://doi.org/10.1111/1468-0262.00002
p. 21-43

Alvin E. Roth, Uriel G. Rothblum

We consider the strategic options facing workers in labor markets with centralized market clearing mechanisms such as those in the entry level labor markets of a number of professions. If workers do not have detailed information about the preferences of other workers and firms, the scope of potentially profitable strategic behavior is considerably reduced, although not entirely eliminated. Specifically, we demonstrate that stating preferences that reverse the true preference order of two acceptable firms is not beneficial in a low information environment, but submitting a truncation of the true preferences may be. This gives some insight into the successful operation of these market mechanisms.


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Supplement to "Best Nonparametric Bounds on Demand Responses"

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Supplement to "Best Nonparametric Bounds on Demand Responses"

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Supplement to "Best Nonparametric Bounds on Demand Responses"

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Supplement to "Best Nonparametric Bounds on Demand Responses"

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Supplement to "Best Nonparametric Bounds on Demand Responses"

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Supplement to "An Economic Model of Friendship: Homophily, Minorities and Segregation"

An analysis of two important issues: one providing a treatment of the friendship formation model when preferences are satiated in the number of friends and a study, in detail, of a model with discrete friendships.

Supplement to "Financial Innovation and the Transactions Demand for Cash"

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Supplement to "Financial Innovation and the Transactions Demand for Cash"

A zip file containing data and programs for this manuscript.  A brief guide to the content of these files is contained in the README.doc file.

Supplement to "The Impact of Uncertainty Shocks"

The complete set of files to replicate everything in the paper.

Supplement to "Last-in-First-out Oligopoly Dynamics"

Programs and readme file for replication.

Supplement to "The Impact of Uncertainty Shocks"

Additional figures

Supplement to "The Role of Information in Repeated Games with Frequent Actions"

This file contains proofs for the paper.

Supplement to "A Parsimonious Macroeconomic Model for Asset Pricing"

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Supplement to "Learning-by-Doing, Organizational Forgetting, and Industry Dynamics"

PDF file containing proofs for the manuscript.

Supplement to "Learning-by-Doing, Organizational Forgetting, and Industry Dynamics"

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Supplement to "Noncontractible Heterogeneity in Directed Search"

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Supplement to "Alternative Models for Moment Inequalities"

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Supplement to "Learning the Wealth of Nations"

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Supplement to "Herding and Contrarian Behaviour in Finanicial Markets"

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Supplement to "Timing and Self Control"

This appendix has several sections. W1 is another example/application of the model.  W2 is a brief proof of something asserted in the text. W3 provides a foundation for the model in terms of a game between the long run self and a sequence of shorter one selves. W4 explores an alternative model; it shows that the alternative makes no difference with linear control sets but leads to odd conclusions when the cost is convex.

Supplement to "Estimation of Jump Tails"

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Supplement to "The Distributive Impact of Reforms in Credit Enforcement: Evidence from Indian Debt Recovery Tribunals"

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Supplement to "Functional Differencing"

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Supplement to "Sparse Models and Methods for Optimal Instruments with an Application to Eminent Domain"

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Supplement to "From Natural Variation to Optimal Policy? The Importance of Endogenous Peer Group Formation"

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Supplement to "Private Information and Insurance Rejections"

Appendix A contains the proof of Theorem 1 and discusses Remark 1.  Appendix B provides proofs for the lower bound approach discussed in Section 4.1.  Appendix C discusses the data, including details for the covariate specifications and the sample selection.  Appendix D discusses the empirical specification for the lower bound estimator, presents the decomposition discussed in Section 6.3, and presents additional robustness checks referred to in Section 6.5. Section E provides details on the specification and estimation of the structural approach referred to throughout Section 7.  Finally Section F presents a selection of pages from the LTC underwriting guidelines of Genworth Financial.

Supplement to "Private Information and Insurance Rejections"

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Supplement to "Organizing the Global Value Chain"

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Supplement to "Organizing the Global Value Chain"

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Supplement to "Hazardous Times for Monetary Policy: What do Twenty-Three Million Bank Loans Say about the Effects of Monetary Policy on Credit Risk-Taking?"

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Supplement to "Trade Liberalization and Labor Market Dynamics"

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Supplement to "A Model of the Consumption Response to Fiscal Stimulus Payments"

This appendix is organized as follows.  Section A illustrates another case of wealthy hand to mouth behavior which completes the discussion of Section 4.1 in the main text. Section B contains more details on our definitions of liquid and illiquid wealth from the SCF and on the measurement of hand-to-mouth households.  Section C describes certain steps of the model's calibration omitted from the main text.  Section D contains a robustness analysis on the baseline rebate experiment.  The numerical computation of the model and the simulation of the policy experiments are delineated in Section E.

Supplement to "A Model of the Consumption Response to Fiscal Stimulus Payments"

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