Recent good looking market design papers I hope to read (on auctions, unraveling, and interviews)

There was a time when I could reasonably hope to have read market design papers before they appeared in print, but now there are many fine papers that I'll never have a chance to read. (I'm sure that's just because the field is growing so much...)  I haven't given up, however...   Here are three that recently caught my eye.

Hu, Edwin, and Dermot Murphy. "Vestigial tails? Floor brokers at the close in modern electronic markets." Management Science (2025).

 Abstract: The closing auction is an increasingly important trade mechanism due to the rise of passive funds that require closing price execution. We study differences in auction mechanism design on NYSE and Nasdaq that may affect closing price efficiency. Unlike Nasdaq, NYSE allows late auction orders through its floor brokers, providing traders with more flexibility to mitigate or create large last-minute auction imbalances. Price changes in the closing auction are more likely to reverse on NYSE compared with Nasdaq, suggesting greater price inefficiency in NYSE closing auctions. Larger last-minute abnormal imbalances on NYSE, particularly in stocks where auction competition may be inhibited by relatively high floor broker auction fees, explain these stronger reversals. Evidence from the NYSE floor closure during the COVID-19 pandemic supports a causal interpretation. Our results highlight an important tradeoff between auction flexibility and price efficiency.

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Stable Matching with Interviews, by Itai Ashlagi, Jiale Chen, Mohammad Roghani, Amin Saberi

    Part of: Volume: 16th Innovations in Theoretical Computer Science Conference (ITCS 2025)
    Series: Leibniz International Proceedings in Informatics (LIPIcs)
    Conference: Innovations in Theoretical Computer Science Conference (ITCS)  

Abstract: "In several two-sided markets, including labor and dating, agents typically have limited information about their preferences prior to mutual interactions. This issue can result in matching frictions, as arising in the labor market for medical residencies, where high application rates are followed by a large number of interviews. Yet, the extensive literature on two-sided matching primarily focuses on models where agents know their preferences, leaving the interactions necessary for preference discovery largely overlooked. This paper studies this problem using an algorithmic approach, extending Gale-Shapley’s deferred acceptance to this context.
Two algorithms are proposed. The first is an adaptive algorithm that expands upon Gale-Shapley’s deferred acceptance by incorporating interviews between applicants and positions. Similar to deferred acceptance, one side sequentially proposes to the other. However, the order of proposals is carefully chosen to ensure an interim stable matching is found. Furthermore, with high probability, the number of interviews conducted by each applicant or position is limited to O(log² n).
In many seasonal markets, interactions occur more simultaneously, consisting of an initial interview phase followed by a clearing stage. We present a non-adaptive algorithm for generating a single stage set of in tiered random markets. The algorithm finds an interim stable matching in such markets while assigning no more than O(log³ n) interviews to each applicant or position."

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Deadlines and matching, by Garth Baughman, Journal of Economic Theory, Volume 228, September 2025
https://doi.org/10.1016/j.jet.2025.106065

Abstract: Deadlines and fixed end dates are pervasive in matching markets. Deadlines drive fundamental non-stationarity and complexity in behavior, generating significant departures from the steady-state equilibria usually studied in the search and matching literature. I consider a two-sided matching market with search frictions where vertically differentiated agents attempt to form bilateral matches before a deadline. I give novel proofs of existence and uniqueness of equilibria, and show that all equilibria exhibit an “anticipation effect” where less attractive agents become increasingly choosy over time, preferring to wait for the opportunity to match with attractive agents who, in turn, become less selective as the deadline approaches. When agents are patient, a sharp characterization is available: at any point in time, the market segments into a first class of matching agents and a second class of waiting agents. This points to a different interpretation of unraveling.

Sorority rush (but now even more so)

 The Atlantic has a story about the contemporary unraveling of sorority rush at Southern colleges: now rush is preceded by rush training...

What It Costs to Be a Sorority Girl,  Parents hire coaches for all sorts of extracurriculars; why not to train their daughters to make friends? By Annie Joy Williams 

"It may sound insane to hire someone to train your teenage daughter to talk to other teenage girls, but sorority rush, especially in the South, is a major undertaking. Parents invest in lots of kids’ activities; private coaching is now a common feature of competitive athletics. And getting their kids into the right sorority, parents believe, might help them make the kinds of connections that can get them job interviews someday. ... There are unspoken rules, secret ranking systems, decades of traditions to study, and some hard and fast dos and don’ts, according to Alverson: “You don’t talk about bucks; you don’t talk about boys; you don’t talk about booze,” he told me. “A lot of people say don’t talk about the Bible, but I don’t buy in to that one.” If church is important to you, he said, it’s okay to say that; just remember that “Jesus is not going through rush.”

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Earlier:

Mongell, Susan, and Alvin E. Roth. "Sorority rush as a two-sided matching mechanism." The American Economic Review (1991): 441-464.

Early hiring and late poaching

 Akhil Vohra's paper on unraveling is in the latest AEJ:Micro. It proposes a novel cause of unraveling of labor markets.  Unraveling--early hiring before competitors--can arise for multiple reasons...

Unraveling and Inefficient Matching

• Akhil Vohra

American Economic Journal: Microeconomics

vol. 17, no. 3, August 2025

(pp. 415–53)

Download Full Text PDF

• Article Information

Abstract

Labor markets unravel when workers and firms match inefficiently early under limited information. I argue that a significant determinant of unraveling is the presence of a secondary market, where firms can poach workers, and its transparency: how well firms can ascertain workers' value once they are employed by competitors. While early hiring reduces the probability of hiring a high-type worker, it prevents rivals from learning about the worker, making poaching difficult. When secondary markets are very transparent, unraveling disappears. However, the matching remains inefficient due to the incentives of low-tier firms to communicate that they have not hired top-quality workers.

 

Preference signaling in the Political Science job market

 There is now signaling in the Political Science job market:  They allow job candidates to send up to three signals: here's the APSA's page with frequently asked questions about signaling.

Aside from the procedures APSA members should use, their site offers some general comments about signaling. Some excerpts:

What is the history of signaling as applied to specialized labor markets like that for political science PhDs?

 The American Economics Association (AEA) Ad Hoc Committee on the Job Market, including Roth, applied his research to the economics PhDs job market over 15 years ago. Since the 1970s, the job market for economists has been organized around the AEA and related associations’ annual meeting (called the Allied Social Sciences Associations, or the “ASSA”) in January and since 2006, economists have utilized signaling for job interviews that take place at the ASSA. For those who don’t secure a position there, a job “scramble” that is more public takes place later in the spring. These events act as clearinghouses to clear congestion resulting from candidates applying for almost all positions due to their need to secure a position, and also prevents “unraveling,” where employers make offers earlier and earlier each year to get the best possible candidate they can.[1] The AEA Ad Hoc Committee on the Job Market offers detailed advice on signaling for (economics) PhDs going on the job market here.

Why would the political science job market benefit from signaling?

The number of political science job postings per PhD on the job market has decreased considerably since 2011, when there were two job openings for each candidate as it recovered from the Great Recession.[1] After the COVID pandemic, the higher education job market seems to be showing signs that it is recovering more slowly, and political science is no exception to this trend. The behavior of the higher education job markets runs counter to the general labor market trend in the US where jobs are currently outnumbering jobseekers.[2]  Currently there are almost two candidates per job opening on APSA eJobs.[3] The political science job market is also congested in 2023. In the last few years, candidates have reported applying for upwards of 25-50, more than 51, or more than 100 positions in a job market cycle, making the possibilities for matches endless.[4]

After the job market at APSA’s Annual Meeting in September, the job market for political science PhDs is decentralized and thin, lacking a centralizing timeframe, location, or deadline, with the only way for candidates to let employers know they are interested is to contact the hiring committee or send in an application for the position. Jobs are being posted earlier each year to secure the best candidates by utilizing the APSA Annual Meeting as a job market clearinghouse. For the remainder of the academic year, those participating in the job market lack any kind of intentionally designed mechanism to structure their path to a job placement before the next academic year..[5] For all these reasons: a surplus of jobseekers, market congestion (applying to all jobs), market unraveling (earlier and earlier offers), the political science job market would benefit from being approached with the market design tools that have been shown to alleviate these inefficiencies.

Citations

How will signaling benefit candidates and employers at APSA Annual Meeting/ Interview Services?

 Due to job market congestion, the job market centralized around the APSA Annual Meeting/ Interview Services would benefit from a mechanism for candidates and employers to be able to decipher meaningful interest more easily from candidates for positions, and to allow institutions to view candidates more equally across characteristics outside of institutional prestige, rank, or publication records. Due to the large number of candidates relative to jobs, we believe signaling can increase the number of matches facilitated, decrease the number of applications both written and submitted by candidates and reviewed by hiring committees, and decrease the stress of all participants in the market. We have created a pilot program to beta test how signaling will work for employers and candidates utilizing Interview Services at the Annual Meeting.

The Path to a Match for Interventional Cardiology Fellowships

The Society for Cardiovascular Angiography & Interventions has started a fellowship match, and here's an article describing the familiar marketplace failure that led to that decision, involving unraveling of application, interview and appointment dates, with the resulting congestion and exploding offers, and the process of reaching sufficient consensus to move to a centralized match ( to be run by the NRMP).

The Path to a Match for Interventional Cardiology Fellowship: A Major SCAI Initiative  by Douglas E. Drachman MD, FSCAI (Chair) a, Tayo Addo MD b, Robert J. Applegate MD, MSCAI c, Robert C. Bartel MSc, CAE d, Anna E. Bortnick MD, PhD, MSc, FSCAI e, Francesca M. Dea d, Tarek Helmy MD, MSCAI f, Timothy D. Henry MD, MSCAI g, Adnan Khalif MD, FSCAI h, Ajay J. Kirtane MD, SM, FSCAI i, Michael Levy MD, MPH, FSCAI j, Michael J. Lim MD, MSCAI k, Ehtisham Mahmud MD, MSCAI l, Nino Mihatov MD, FSCAI m, Sahil A. Parikh MD, FSCAI i, Laura Porter CMP d, Abhiram Prasad MD n, Sunil V. Rao MD, FSCAI o, Louai Razzouk MD, MPH, FSCAI o, Samit Shah MD, PhD, FSCAI p, Adhir Shroff MD, MPH, FSCAI q, Jacqueline E. Tamis-Holland MD, FSCAI r, Poonam Velagapudi MD, FSCAI s, Fredrick G. Welt MD, FSCAI t, J. Dawn Abbott MD, FSCAI (Co-Chair), Journal of the Society for Cardiovascular Angiography & Interventions, in press.

"Abstract: The field of interventional cardiology (IC) has evolved dramatically over the past 40 years. Training and certification in IC have kept pace, with the development of accredited IC fellowship training programs, training statements, and subspecialty board certification. The application process, however, remained fragmented with lack of a universal process or time frame. In recent years, growing competition among training programs for the strongest candidates resulted in time-limited offers and high-pressure situations that disadvantaged candidates. A grassroots effort was recently undertaken by a Society for Cardiovascular Angiography & Interventions task force, to create equity in the system by establishing a national Match for IC fellowship. This manuscript explores the rationale, process, and implications of this endeavor."

"over the past several years program directors and candidates found that the process has devolved, with wide variation in application timelines and on-the-spot offers, which disadvantage candidates and programs looking to interview a range of applicants.

"The pressures and unfair features of the existing system were further fueled by the transition to virtual interviews related to the COVID-19 pandemic. With logistics of travel no longer a consideration, programs could commence interviews nearly immediately after the applications became available. This led to more candidates being interviewed in rapid succession, and a system evolved in which programs quickly assessed candidates, offered positions, and applied pressure for candidates to accept offers or be passed over for other candidates.

"In response to the shortcomings of the current system, members of Society for Cardiovascular Angiography & Interventions (SCAI) were inspired to lead a grassroots educational campaign to organize IC program directors and the broader interventional community to commit to a regulated “Match” process under the established National Resident Match Program (NRMP). This manuscript provides an account of how this process unfolded and how a Match for IC fellowship was ultimately created.

...

"From the applicant’s perspective, the lack of a structured timeline for the application process required candidates to make career decisions early in the first year of cardiovascular disease training and to compose their application materials 2 years in advance of starting IC training. With ERAS open to application submission in the fall of the second year for the December release to programs, fellows had limited time on clinical rotations to determine their interest and aptitude for IC. Additionally, letters of recommendation, written at this early stage, risked not being fully reflective of each candidate’s capacity to improve and develop the technical skills and clinical knowledge important for success in the field. There were other disadvantages to candidates in the existing system. Fellows at programs with an IC fellowship had an advantage of securing an internal spot but were often pressured to limit their exploration of the opportunities at other programs, potentially disadvantaging them in the long term.

"Another problem with the existing system was that the pressure to recruit candidates on a tight timeline limited the opportunity to interview applicants from a wide variety and diversity of programs, potentially reducing the ability to recruit underrepresented candidates from varied programs. Despite an overall increase in the diversity of physicians entering the workforce,11 there has been little change in the applicant pool for IC over the years, with fewer than 5% of applicants self-reporting as Black race or Hispanic ethnicity and only 10% identifying as women.12

"Competition among the programs, each vying for the seemingly strongest candidates, degenerated into a system that favored quick decision-making on the part of programs to offer positions as early as possible. The influence of the COVID-19 pandemic in 2020 and 2021 negatively impacted an already high-pressure application process, compounding its many weaknesses.13 Fellowship interviews were hosted virtually rather than in person, which enabled candidates to interview at a greater number of programs without the need to travel. In addition, the virtual format accelerated the tempo of an application process that was already felt to be too fast, resulting in an increase in so-called “exploding offers”—offers that required the accepted candidate to respond within a very short timeframe or risk losing the offer. This practice placed significant pressure on candidates to make quick decisions, often forcing them to determine whether to accept the offer from 1 institution before having the opportunity to participate in interviews with—let alone see and evaluate—other programs or fully understand the ramifications of accepting an offer on their personal lives. At the same time, the accelerated timetable left many programs scrambling to identify applicants, as the number of available candidates diminished rapidly due to applicants accepting time-sensitive, exploding offers.

...

"As with other national efforts of this magnitude, the path to develop consensus in favor of a Match was not without challenges. There were several program directors around the country who strongly opposed the institution of a Match. These were well-regarded academicians and clinician educators who expressed very sincere concerns about the impact on fellows in their programs. The members of the SCAI Match Task Force addressed as many concerns as possible, providing the information necessary for each program director to make the best decision for their institution. A minority of program directors remained opposed to the initiative or did not engage with Task Force members despite multiple attempts to be contacted.

"The Match campaign proved highly effective, and by November 2022, the 75% threshold of programs and positions to implement the Match was met

...

"As the sponsor of the Match, SCAI considered the pros and cons of the “All In Policy,” where registered programs must attempt to fill all ACGME positions at the program through the Match.15,16 SCAI opted out of the “All In Policy” to allow programs to have flexibility for unique situations that require commitment to a candidate outside of the Match. 

...

"As a result of the successful implementation of the Match in IC, the first Match cycle for incoming IC fellows will open in the summer of 2024. Individuals eligible to apply include cardiovascular disease fellows in their third or final year of training and graduates who have completed fellowship and are in clinical practice. This class will start IC training in July 2025"

Matching and market design in the latest GEB (stack overflow...)

 The current (January 2024) issue of Games and Economic Behavior presents an increasingly common dilemma (faced by scholars in burgeoning fields, and maybe by aging scholars...). Papers I should read are being written much faster than I can read them.

Here are 9 papers in that issue that are pretty clearly about matching and market design (which leaves out some papers on auctions and one on unraveling of the timing of markets) :

1. Obvious manipulations of tops-only voting rules

   R. Pablo Arribillaga, Agustín G. Bonifacio

   Pages 12-24

   View PDF

2. select article Rejection-proof mechanisms for multi-agent kidney exchange

   Research articleOpen access

   Rejection-proof mechanisms for multi-agent kidney exchange

   Danny Blom, Bart Smeulders, Frits Spieksma

   Pages 25-50

   View PDF

3. 1. Designing rotation programs: Limits and possibilities

      Ville Korpela, Michele Lombardi, Riccardo D. Saulle

      Pages 77-102

      View PDF

   2. select article School choice with transferable student characteristics

      Research articleOpen access

      School choice with transferable student characteristics

      Carmelo Rodríguez-Álvarez, Antonio Romero-Medina

      Pages 103-124

      View PDF

      Auction timing and market thickness

      Isaías N. Chaves, Shota Ichihashi

      Pages 161-178

      View PDF

      
      

      1. School choice with costly information acquisition

         Tyler Maxey

         Pages 248-268

         View PDF

      2. select article Singles monotonicity and stability in one-to-one matching problems

         Research articleOpen access

         Singles monotonicity and stability in one-to-one matching problems

         Yoichi Kasajima, Manabu Toda

         Pages 269-286

         View PDF

      3. select article Reallocation with priorities

         Research articleFull text access

         Reallocation with priorities

         Julien Combe, Jan Christoph Schlegel

         Pages 287-299

         View PDF

         
         

         Coalitional stability in matching problems with externalities and random preferences

         Adriana Piazza, Juan Pablo Torres-Martínez

         Pages 321-339

         View PDF