Publications

Educators

Purchase

2007
Working Paper

Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the NYC High School Match

By: Atila Abdulkadiroglu and Alvin E. Roth

2024
Working Paper

Transitory and Permanent Cash Flow Shocks in Debt Contract Design

By: Le Ma, Anywhere Sikochi and Yajun Xiao

We examine how lenders design contracts to account for transitory and permanent cash flow shocks facing borrowers. We find that volatile transitory cash flow shocks are associated with fewer liquidity covenants, indicating financial flexibility that enables firms to... View Details

Keywords: Debt Covenants; Cash Flow Shocks; Debt Contracting; Likelihood Of Default; Cash Flow; System Shocks

SSRN

21 Apr 2014
News

Matching nonprofits with companies that can help

Robert Goodwin (GMP 3, 2007), CEO of Executives Without Borders, talks about helping match nonprofits with socially responsible companies. (Published April 2014) View Details

Research Summary

Optimal Contracts under Inequity Aversion with Voluntary Enforcement (with Tilman Borgers)

We analyze contract structure and efficiency in a Moral Hazard model with possibly fairminded agent and principal when the contract is not automatically enforced but this is a voluntary choice by the contracting parties independently. We find that no penalizing... View Details

Forthcoming
Article

Transitory and Permanent Cash Flow Shocks in Debt Contract Design

By: Le Ma, Anywhere Sikochi and Yajun Xiao

We examine how lenders design contracts to account for transitory and permanent cash flow shocks facing borrowers. We find that volatile transitory cash flow shocks are associated with fewer liquidity covenants, indicating financial flexibility that enables firms to... View Details

Keywords: Debt Covenants; Cash Flow Shocks; Debt Contracting; Likelihood Of Default; Cash Flow; System Shocks

May 2021
Article

Stability, Strategy-Proofness, and Cumulative Offer Mechanisms

By: John William Hatfield, Scott Duke Kominers and Alexander Westkamp

We consider the setting of many-to-one matching with contracts, where firms may demand multiple contracts, but each worker desires at most one contract. We introduce three novel conditions—observable substitutability, observable size monotonicity, and... View Details

Keywords: Matching With Contracts; Stability; Strategy-proofness; Substitutability; Size Monotonicity; Cumulative Offer Mechanism; Marketplace Matching; Balance and Stability

2008
Working Paper

Contracting for Servicizing

By: Michael W. Toffel

Servicizing, a novel business practice that sells product functionality rather than products, has been touted as an environmentally beneficial business practice. This paper describes how servicizing transactions mitigate some problems associated with sales... View Details

Keywords: Customer Focus and Relationships; Contracts; Market Transactions; Service Delivery; Service Operations; Sales

March 1991
Article

Incentives in Two-Sided Matching with Random Stable Mechanisms

By: A. E. Roth and J. H. Vande Vate

Keywords: Motivation and Incentives

18 Jan 2024
News

Match Game

When the Bulletin included Faye Iosotaluno (MBA 2008) in its December issue, the longtime consumer tech executive was COO of Tinder. On January 9, the company announced Iosotaluno would become Tinder CEO. “It’s hard to overstate the impact Tinder has had on... View Details

May 1997
Teaching Note

Managing Product Development: Matching Technology with Context, Instructor's Note

By: Marco Iansiti

This overview to Managing Product Development (MPD) both previews course material, cases, exercises, and lectures--and provides its conceptual and academic underpinnings. Additionally, this note links these materials to the activities students will be undertaking in... View Details

Keywords: Curriculum and Courses; Product Development; Knowledge Management; Performance; Projects; Management Practices and Processes; Opportunities; Strategy; Management Analysis, Tools, and Techniques

Purchase

1986
Article

A Note on Job Matching with Budget Constraints

By: S. J. Mongell and A. E. Roth

Keywords: Budgets and Budgeting

June 1989
Article

Two-Sided Matching with Incomplete Information about Others' Preferences

By: A. E. Roth

01 Dec 2020
News

Well Matched

Her interests leaned more in the direction of strategy—and sports. Rapaport found plenty of outlets in both areas at HBS, where she was president of the Business of Sports Club. She also volunteered for Crossover into Business, an HBS program launched in partnership... View Details

Keywords: Julia Hanna; venture capital; diversity; inclusion; tennis; leadership; women; Finance

2009
Working Paper

Strategy-proofness versus Efficiency in Matching with Indifferences: Redesigning the New York City High School Match

By: Atila Abdulkadiroglu, Parag A. Pathak and Alvin E. Roth

2008
Chapter

Matching and Market Design

By: Muriel Niederle, Alvin E. Roth and Tayfun Sonmez

Matching is the part of economics concerned with who transacts with whom and how. Models of matching, starting with the Gale-Shapley deferred acceptance algorithm, have been particularly useful in studying labour markets and in helping design clearinghouses to fix... View Details

Keywords: Market Design; Marketplace Matching; Outcome or Result; Mathematical Methods

03 Jul 2018
What Do You Think?

Should CEO Satya Nadella Cancel Microsoft’s Contract with ICE?

Madrolly When Should a Board Encourage a Triple Bottom Line Philosophy? Respondents to this month’s column provided a resounding “no” to the question of whether CEO Satya Nadella should accede to the wishes of a vocal minority of employees and cancel Microsoft’s View Details

Keywords: by James Heskett; Computer; Technology

June 1983
Article

A Comparison of Tournaments and Contracts

By: Jerry R. Green and Nancy Stokey

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk-neutral principal and many risk-averse agents. Each agent's output is a stochastic function of his effort level plus an additive shock term that is... View Details

Keywords: Tournaments; Contracts