Matchings and Markets (ECON 488)

2023 Spring
Faculty of Arts and Social Sciences
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; have the ability to continue to educate him/herself. 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. Possess sufficient knowledge of mathematics, science and program-specific engineering topics; use theoretical and applied knowledge of these areas in complex engineering problems.

2. Identify, define, formulate and solve complex engineering problems; choose and apply suitable analysis and modeling methods for this purpose.

3. Develop, choose and use modern techniques and tools that are needed for analysis and solution of complex problems faced in engineering applications; possess knowledge of standards used in engineering applications; use information technologies effectively.

4. Have the ability to design a complex system, process, instrument or a product under realistic constraints and conditions, with the goal of fulfilling specified needs; apply modern design techniques for this purpose.

5. Design and conduct experiments, collect data, analyze and interpret the results to investigate complex engineering problems or program-specific research areas.

6. Possess knowledge of business practices such as project management, risk management and change management; awareness on innovation; knowledge of sustainable development.

7. Possess knowledge of impact of engineering solutions in a global, economic, environmental, health and societal context; knowledge of contemporary issues; awareness on legal outcomes of engineering solutions; knowledge of behavior according to ethical principles, understanding of professional and ethical responsibility.

8. Have the ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.

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. Design, implement, test, and evaluate a computer system, component, or algorithm to meet desired needs and to solve a computational problem.

2. Demonstrate knowledge of discrete mathematics and data structures.

3. Demonstrate knowledge of probability and statistics, including applications appropriate to computer science and engineering.

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