ECON 1108 Chapter 1: ECON 1108 Chapter 1 of Roth Sotomayor book
Document Summary
First to review and integrate the growing literature about a family of models of labor markets, auctions, and other economic environments. Second hopes to illustrate the subtle interactions between modeling considerations and mathematical analysis that characterize use of game theory to explain and predict behavior of real world economic systems. Refers to the fact that agents in such markets belong, from the outset to one of 2 disjoint sets. Internship introduced first as an optional form of postgraduate medical education. Gave interns concentrated exposure and hospitals supply of relatively cheap labor. Nimp algorithm used for first time in 1951, remains in use to this day. Conceived and implemented as a voluntary procedure, students and hospitals free to try to arrange their own matches outside of system and no means of enforcing compliance. Situations in which there are some students and hospitals not matched with each other but both prefer to be matched one to the other will be called unstable.
