Matching Markets

Matching markets are situations where two groups of participants need to find suitable partners or matches, such as job seekers and employers, students and schools, or renters and landlords. Unlike traditional markets where goods are exchanged for money, matching markets focus on preferences and suitability. For example, in a job market, candidates and companies both have specific preferences. Efficient matching ensures that participants are paired in a way that maximizes overall satisfaction and reduces mismatches. Algorithms or platforms, like job boards or school choice systems, help facilitate these pairings, aiming for a balance that benefits both sides.