Matching Markets
Matching markets are systems where participants are paired based on preferences and characteristics, rather than through traditional price mechanisms. Common examples include job markets, where employers and job seekers are matched, and school admissions, where students are paired with schools based on their choices and available spots.
In these markets, algorithms often play a crucial role in facilitating matches. The Gale-Shapley algorithm is a well-known method used to achieve stable matches, ensuring that no participant would prefer to be paired with someone else over their current match. This approach helps create efficient and fair outcomes for all involved.