Cadet-Branch Matching in a Kelso–Crawford Economy
- American Economic Journal: Microeconomics (Forthcoming)
Sönmez (2013) and Sönmez and Switzer (2013) used matching theory with unilaterally substitutable priorities to propose mechanisms to match cadets to military branches. This paper shows that, alternatively, the Sönmez and Sönmez–Switzer mechanisms can be constructed as descending salary adjustment processes in Kelso–Crawford (1982) economies in which cadets are (grossly) substitutable. The lengths of service contracts serve as inverse-salaries. The underlying substitutability explains the unilateral substitutability of the priorities utilized by Sönmez and Sönmez–Switzer.
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