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In matching markets, agents often have incomplete preference information. Strategic interviewing by medical residents reveals that assortative matching occurs only with limited interviews, not extensive ones.

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Area of Science:

  • Economics
  • Game Theory
  • Matching Markets

Background:

  • Traditional matching market models assume complete preference knowledge, which is unrealistic for large participant pools.
  • Agents often possess partial information and invest resources to refine their understanding of choices and potential outcomes.

Purpose of the Study:

  • To investigate strategic resident behavior in the medical residency matching process, considering incomplete information.
  • To analyze the conditions under which assortative equilibrium emerges in a setting with a publicly known hospital ranking of residents.

Main Methods:

  • Theoretical analysis of strategic interviewing behavior by residents prior to preference submission.
  • Examination of equilibrium existence under general conditions and specific preference distributions (Mallows distribution).
  • Simulation of potential outcomes to understand resident strategies like 'reach/safety'.

Main Results:

  • Pure strategy equilibria are shown to exist under broad conditions.
  • Assortative equilibrium (top residents matching with top hospitals) is proven to occur only when residents interview a limited number of programs.
  • Surprisingly, assortative interviewing breaks down when residents interview numerous programs, even with similar preferences.

Conclusions:

  • Strategic interviewing significantly impacts matching outcomes, especially when information is incomplete.
  • The number of interviews is a critical factor determining the emergence of assortative matching.
  • Residents may adopt 'reach/safety' strategies in complex matching environments.