You Are A Matchmaker
(We can help.)
Matchmaking isn’t limited to dating!
Matching 101
How to bring different players together in the best possible way is a key problem in economics. Traditional markets use money as a signal of value, and goods or services are allocated to those willing to pay the most. Classical economics says the market will clear at the price at which the willingness to produce (supply) equals the marginal willingness to pay (demand).
But what about markets without money?
These scarce resources are allocated through a “matching process.” In his book, Who Gets What and Why, Al Roth notes that “A market involves matching whenever price isn’t the only determinant of who gets what.”
He goes on to explain, “Matching is economist-speak for how we get the many thing we choose in life that also must choose us. You can’t just inform Yale University that you’re enrolling or Google that you’re showing up for work. You also have to be admitted or hired. Neigher can Yale or Google dictate who will come to them…”
The History of Matching Science
Beginning in the mid-1900s, David Gale and Lloyd Shapley studied different matching methods theoretically and were the first to define an algorithmic approach to optimal allocation. Beginning in the 1980s, Al Roth explained how markets function in practice. Shapley and Roth won the Nobel Prize for their work in 2012.
Since then, the field has been led by Tayfun Sönmez, Atila Abdulkadiroglu, and our co-founders, Parag Pathak and Josh Angrist. They expanded on the field by applying the science of matching to more complex real world scenarios - everything from medical treatments to school assignments to military deployments to talent placement.
In 2018, Parag Pathak won the John Bates Clark Medal, the most prestigious award for young economists, for his work on K12 school enrollment markets.
In 2021, Josh Angrist won the Nobel Prize in Economics for his work in this field, particularly for using natural experiments to infer causality.
In 2020, Parag and Josh co-founded Avela - the only company focused on solving matching problems. We offer the only software platform purpose built to solve matching problems, as well as a range of advisory services. And while we’re used the most in education, our tool can be used across industries.
Below are a few examples of matching markets in the wild.
Matching Market Examples
Education & Nonprofits
K12 School Enrollment
Students → District Schools
Students → Charter Schools
Teacher Placement
Teachers → Schools & Districts
Teachers → Classrooms
TFA Corps Members → Partners
Higher Education
University Universities
Residential College Students → Dorm Rooms
Candidates → Scholarships
Applicant → Interviewers
Graduate Fieldwork and Fellowships
Students → Internships
Nurses → Clinicals
Medical Residents → Hospitals
MSW Candidates → Clinical Fieldwork
MA-Teaching Candidates → Student-Teacher Placements
Graduate Students → Applied Field Learning
Volunteering and Nonprofit Programs
Volunteer → Projects
Mentors → Mentees
Students → After School Activities
Participants → Programs
Traveling Doctors → Countries
Clergy → Parochials
Missionaries → Missions
Government
Permitting
Hunters / Fishers → Permits
Campers → Campground Permits
Civil Service
Prosecutors → Cases
Public Defenders → Defendants
Immigrants → Visas
Foreign Service Assignments: Diplomats →Overseas Tours
Civil Service Assignments
Affordable Housing Lotteries: Homebuyers → Homes
Military and Defense
Officer Accessions
Soldiers → Platoons
Cadets → Units
Officers → Positions
NCOs → Trainings
Units → Deployments
Medical
Therapists → Sessions
Residents → Hospitals
Nurses → Shifts
Recipients → Kidney Donors
Patients → Ventilators
Patients → Vaccines
Talent Mobility & Enterprise HR
Hiring and Talent Placement
Candidates → Interviewer
New Hires → Teams
Fellows → Fellowships
Law Students → Clerkships
Talent Mobility
Rotational Programs: Employees → Rotations
Project Assignments: Engineers → Projects
Staffing: Consultants → Client Engagements
Shift Scheduling: Staff → Shifts
Employees → Secondments
Employees → Externships
Other Examples
Event Ticketing (When Price Isn’t Set to Market Clearing)
Conference Scheduling: Attendee → Sessions
Athletic Meets: Athlete → Event
and of course…
Dating Apps