Matchings and Markets (ECON 488)

2020 Spring
Faculty of Arts and Social Sciences
6.00 / 6.00 ECTS (for students admitted in the 2013-14 Academic Year or following years)
Ahmet Alkan,
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Formal lecture,Interactive lecture,One-to-one tutorial,Group tutorial
Interactive,Learner centered,Communicative,Project based learning
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Game theoretic analysis of the matching of individuals with other individuals or items, typically across two sides, as in marriage, university placement, employment, housing. Competitive cooperative solutions: existence, optimality order structures, constructive procedures; strategic properties; auctions, mechanisms; institution and market design.


The objective of this course is to introduce the student to models on matchings (between individuals or between individuals and firms) and analyses of markets and institutions where matchings take place.


Upon completion of this course, students should be able to:
1. Identify outcomes which are "stable" or in "competitive equilibrium" and provide proofs for their existence.
2. Describe the common-interest order (lattice) structure of stable and competitive equilibrium outcomes.
3. Describe procedures/algorithms (the Deferred Acceptance and Multi-object Auction) that find stable outcomes which are optimal for one side of the market.
4. Describe features which lead to "assortative" outcomes.
5. Describe "unravelling" and inefficiencies under imperfect information.
6. Explain the workings of an existing matching market (e.g., student university placement) and review desirable/undesirable aspects with reference to benchmark outcomes.
7. Blend tools and solution concepts of cooperative and noncooperative game theory.
8. Substantiate notions of economic design as "mechanism/institution", "efficiency", "fairness".
9. Visualize/analyze a "market" with reference to abstract models.
10. Apply basic mathematical reasoning and give elementary proofs.


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 4

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 3

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects. 5

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 3

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 2

1. Develop knowledge of theories, concepts, and research methods in humanities and social sciences. 5

2. Assess how global, national and regional developments affect society. 2

3. Know how to access and evaluate data from various sources of information. 3

1. Provide constructive analysis of economic phenomena at the national and international level, and interactions between the two. 5

2. Develop an understanding of organizations and institutions in the society as well as their influence on the economy. 5

3. Recognize how incentives shape the behavior of individuals and organizations. 5

4. Identify ?economic? problems and propose alternative models and/or design and conduct research to provide viable solutions using theoretical tools and/or quantitative methods. 5

5. Communicate problems and solutions to managerial and policy decision-making units as well as to lay audiences. 4


  Percentage (%)
Final 50
Term-Paper 25
Participation 10
Homework 15



Two-Sided Matching : A Study in Game-Theoretic Modelling and Analysis
A. Roth , M. Sotomayor