Revenue Maximizing Matching Platforms for Homophilic Preferences

Student: Moiseev Andrei

Educational Programme: Applied Economics (Master)

Year of Graduation: 2021

Research on the stable matches has been carried out for a long time and is widely used in different countries of the world: from optimizing the system of distribution of children to schools and ending with the distribution of athletes by teams. In this paper, we consider a model with two types of agents: men and women with a homophilic preference profile of each agent when this agent is also the most preferred for the most desired partner. Within the model, agents interact within a platform that charges each agent a membership fee. We will consider the conditions for achieving the optimum within the model on some segments of homophilic preferences and propose a practical implementation of the optimal strategy of the platform’s actions.

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