When Words Move Rankings: Strategic Messaging in Matching Markets
Centralised matching markets rely on candidate-proposing deferred acceptance to guarantee strategy-proofness and candidate-optimal outcomes. This paper studies whether pre-match messaging by firms undermines these guarantees. We build a model incorporating ego-utility, reciprocity, rejection aversion, and rank-dependent preferences, and test its predictions in a laboratory experiment with committed, uncommitted, and random-message treatments. Firms direct messages strategically, candidates respond by mis-reporting their rank-order lists in favour of the messaging firm, and market outcomes shift toward firm-optimal stable matchings. Pre-match communication is an accessible, low-risk manipulation that exploits behavioural biases strategy-proof mechanisms were not designed to withstand.
Key takeaway
“Even seemingly innocuous communication can undermine market designers’ objectives.”
Market designers should look beyond the mechanism and consider the broader environment.
↻ Click to flipThe mechanism
Stylised example: A candidate's preference is A ≻ B ≻ C, Assume Firm A is candidate-optimal match, and Firm C is firm-optimal.
Classical theory
Preference = ROL
matched · Firm A
the candidate-optimal match
Behavioural strategy
Message the firm-optimal partner, before ROL submission
Behavioural response
ROL ≠ Preference
the candidate misreports in the messaging firm’s favour
Market outcome
matched · Firm C
the firm-optimal match
Pre-match messaging acts as a low-risk behavioural manipulation: candidates deviate from truth-telling to favour the messaging firm, shifting the equilibrium to a firm-optimal stable matching — both of the designer’s objectives fail.
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