In the publication American Economic Journal (2024, Volume 16, Issue 3), Olivier Bochet and Jacopo Magnani investigate critical dynamics within vertically differentiated matching markets in their paper, Limited Strategic Thinking and the Cursed Match. (https://doi.org/10.1257/mic.20210344).
This study examines the phenomenon known as the "acceptance curse," where being accepted by a potential partner is perceived as unfavorable information regarding one’s quality. By conducting experimental investigations, the authors explore whether individuals can anticipate this curse in environments characterized by private information.
Our findings provide valuable insights into the psychological mechanisms that underpin decision-making in matching markets. Understanding the acceptance curse highlights the necessity for deeper exploration into how individuals navigate uncertainty and strategic interactions.
Co-principal Investigator
This research not only contributes to the theoretical framework of strategic thinking in economics but also enhances our comprehension of how individuals process information in vital life choices, guiding future research in both economic theory and behavioral studies.
NYU Abu Dhabi
Norwegian University of Science and Technology