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American Economic Review Vol. 102 No. 5 2012

A Field Study on Matching with Network Externalities

Mariagiovanna Baccara1; Ayşe İmrohoroğlu2; Alistair J. Wilson3; Leeat Yariv4

1 Olin School of Business, Washington University in St. Louis, Campus Box 1133, One Brookings Drive, St. Louis, MO 63130. · 2 Department of Finance and Business Economics, University of Southern California, Marshall School of Business, 3670 Trousdale Parkway, Los Angeles, CA 90089. · 3 Department of Economics, University of Pittsburgh, 230 S. Bouquet St., Pittsburgh, PA 15260. · 4 Division of Humanities and Social Sciences, California Institute of Technology, 1200 E. California Blvd., Pasadena, CA 91125.

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.

DOI
10.1257/aer.102.5.1773
Volume
102
Issue
5
Pages
1773-1804
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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