Matching theory
In macroeconomics , the matching theory (also referred to as search and matching theory ) is a mathematical or game-theoretic theoretical framework that describes the development of mutually beneficial relationships over time, with the duration and intensity of the search being the matching (accuracy of fit) of offer and Can improve demand.
A founder of the theory is Peter A. Diamond .
Applications
The theory can be applied to all markets in which search processes play a central role. Matching theory is particularly important for imperfect markets that are characterized by information deficits, uncertainty and friction. Dale Mortensen and Christopher Pissarides systematically applied the theory to the labor market in the 1980s. It is also applicable to the real estate market or the marriage market.