Stable marriages and search frictions

  title={Stable marriages and search frictions},
  author={Stephan Lauermann and Georg N{\"o}ldeke},
  journal={J. Economic Theory},
Stable matchings are the primary solution concept for two-sided matching markets with nontransferable utility. We investigate the strategic foundations of stability in a decentralized matching market. Towards this end, we embed the standard marriage markets in a search model with random meetings. We study the limit of steady-state equilibria as exogenous frictions vanish. The main result is that convergence of equilibrium matchings to stable matchings is guaranteed if and only if there is a… CONTINUE READING