Matching in Dynamic Imbalanced Markets

Abstract We study dynamic matching in exchange markets with easy- and hard-to-match agents. A greedy policy, which attempts to match agents upon arrival, ignores the positive externality that waiting provide by facilitating future matchings. prove trade-off between a “thicker” market faster vanishes large markets; policy leads shorter times more matched than any other policy. empirically confirm these findings data from National Kidney Registry. Greedy achieves as many transplants commonly used policies (1.8$\%$ monthly batching) (16 days batching).