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American Economic Review: Vol. 102 No. 5 (August 2012)

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A Field Study on Matching with Network Externalities

Article Citation

Baccara, Mariagiovanna, Ayşe İmrohoroğlu, Alistair J. Wilson, and Leeat Yariv. 2012. "A Field Study on Matching with Network Externalities." American Economic Review, 102(5): 1773-1804.

DOI: 10.1257/aer.102.5.1773

Abstract

We study the effects of network externalities within a protocol for matching faculty to offices in a new building. Using web and survey data on faculty's attributes and choices, we identify the different layers of the social network: institutional affiliation, coauthorships, and friendships. We quantify the effects of network externalities on choices and outcomes, disentangle the layers of the networks, and quantify their relative influence. Finally, we assess the protocol used from a welfare perspective. Our study suggests the importance and feasibility of accounting for network externalities in assignment problems and evaluates techniques that can be employed to this end. (JEL C78, C93, D62, D85, Z13)

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Authors

Baccara, Mariagiovanna (Washington U in St Louis)
İmrohoroğlu, Ayşe (U Southern CA)
Wilson, Alistair J. (U Pittsburgh)
Yariv, Leeat (CA Institute of Technology)

JEL Classifications

C78: Bargaining Theory; Matching Theory
C93: Field Experiments
D62: Externalities
D85: Network Formation and Analysis: Theory
Z13: Economic Sociology; Economic Anthropology; Social and Economic Stratification


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