We study the observation that individuals 𝘭𝘪𝘬𝘦 𝘵𝘰 𝘣𝘦 𝘭𝘪𝘬𝘦𝘥 in two new discussion papers. Christoph Schwaiger and me provide experimental evidence on the underlying mechanisms, and show implications for matching markets. Thanks to @RationalityCRC for the thread!

We often 𝘭𝘪𝘬𝘦 𝘵𝘰 𝘣𝘦 𝘭𝘪𝘬𝘦𝘥. Schools want to attract students who want them most, employees prefer to work for a company that favors them, and singles want to go on a date with someone who is genuinely interested in them. #reciprocalpreferences [1/4]
2nd paper is on the implications of #reciprocalpreferences in matching mechanisms when agents care about others’ preferences but don’t know them perfectly.
▶️ No mechanism guarantees a stable matching where no one wants to switch partners.
More at: https://bit.ly/3Lsfo6E [4/4]
1st paper provides experimental evidence that:
▶️ Reciprocal preferences exist,
▶️ Participants often want to switch to partners who like them,
▶️ Expect these partners to be more cooperative, and are more altruistic themselves.
More at: https://bit.ly/3Lqmdpp [3/4]
#reciprocalpreferences are particularly relevant in #matchingmarkets, where participants not only choose their partner but must be chosen. @TimmOpitz & Christoph Schwaiger study this observation in two new CRC discussion papers.
@ECONMunich @mpi_inno_comp #EconTwitter [2/4]
We often 𝘭𝘪𝘬𝘦 𝘵𝘰 𝘣𝘦 𝘭𝘪𝘬𝘦𝘥. Schools want to attract students who want them most, employees prefer to work for a company that favors them, and singles want to go on a date with someone who is genuinely interested in them. #reciprocalpreferences [1/4]
@YannaiGonch @B3fuss @PeterTroyan3 @RanShorrer @inaciog Obviously, this will happen with support from @BSE_Berlin @BCCPBerlin @RationalityCRC @bbe_berlin
The results also address the puzzle about the prevalence of labor contracts with stochastic compensation. [4/4]
The stochastic compensation ensures that contracts are budget balanced and renegotiation-proof in contrast to previous literature dealing with subjective evaluations. [3/4]
🔍 The paper shows that common forms of stochastic compensation, like payments in stock options or uncertain arbitration procedures, are important for subjective evaluations. [2/4]
2nd paper is on the implications of #reciprocalpreferences in matching mechanisms when agents care about others’ preferences but don’t know them perfectly.
▶️ No mechanism guarantees a stable matching where no one wants to switch partners.
More at: https://bit.ly/3Lsfo6E [4/4]
1st paper provides experimental evidence that:
▶️ Reciprocal preferences exist,
▶️ Participants often want to switch to partners who like them,
▶️ Expect these partners to be more cooperative, and are more altruistic themselves.
More at: https://bit.ly/3Lqmdpp [3/4]
We often 𝘭𝘪𝘬𝘦 𝘵𝘰 𝘣𝘦 𝘭𝘪𝘬𝘦𝘥. Schools want to attract students who want them most, employees prefer to work for a company that favors them, and singles want to go on a date with someone who is genuinely interested in them. #reciprocalpreferences [1/4]
5/7 Key findings:
1. Higher cognitive ability is associated with less perceived disagreement. However an average subject underestimates actual disagreement regardless of cognitive ability.