Matching Theory

Matching Theory is a framework in economics and game theory that examines how to efficiently pair agents or items, such as students with schools, workers with jobs, or buyers with sellers. It seeks to create optimal matches based on preferences and priorities of both parties, ensuring that the most suitable pairings are achieved. For example, in a job market, Matching Theory can help determine which candidates best fit available positions, balancing both employer needs and employee skills. Successful matching can lead to better outcomes, satisfaction, and increased overall efficiency in various systems.