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79761-01 - Colloquium: Economics of Matching II: Applications (3 CP)
| Semester | fall semester 2026 |
| Course frequency | Every fall sem. |
| Lecturers | Georg Nöldeke (georg.noeldeke@unibas.ch, Assessor) |
| Content | Matching markets play a central role in economics, from school choice and college admissions to marriage and labor-market allocation. This colloquium, which will meet during the second half of the fall semester, examines how matching models are implemented computationally, taken to data, and applied to concrete institutional settings. It begins with the assignment problem, its link to Becker’s theory of the marriage market, and related applications in labor markets, while introducing linear programming as a central analytical tool. It then turns to empirical matching models with transferable utility, focusing on the pioneering Choo–Siow framework for marriage-market data. Finally, it examines centralized matching mechanisms such as Gale–Shapley deferred acceptance and the Boston mechanism, focusing on their implementation in school allocation and on how such assignment rules shape outcomes in practice. Throughout, students work hands-on with the statistical software R and encounter the mathematical and econometric tools needed to analyze these environments, including linear programming duality and discrete-choice methods. |
| Learning objectives | Building on the theoretical framework introduced in the course ‘Economics of Matching I – Foundations,’ this course develops students’ understanding of how matching models can be used in applied and computational work. Students learn to formulate empirical matching problems, connect economic structure to computational methods, and implement algorithms and empirical specifications in R. They gain experience with optimization-based formulations of assignment problems, with discrete-choice methods in transferable-utility matching models, and with the computational aspects of centralized matching procedures such as deferred acceptance and the Boston mechanism. The course also prepares students to read research papers and textbook chapters in matching theory, and to present a paper or project in a clear, structured, and critical way. |
| Bibliography | The course is based on the sources in the following list. Specific references will be provided during the lectures. Students are encouraged to consult these sources and some readings may by assigned during the course. - Choo, E. and A. Siow (2006), “Who Marries Whom and Why,” Journal of Political Economy, 114(1), 175–201. - Ergin, H. and T. Sönmez (2006), “Games of School Choice under the Boston Mechanism,” Journal of Public Economics, 90(1–2), 215–237. - Gale, D. and L. S. Shapley (1962), “College Admissions and the Stability of Marriage,” American Mathematical Monthly, 69(1), 9–15. - Galichon, A. (2016), Optimal Transport Methods in Economics, Princeton University Press. - Roth, A. E. and M. A. O. Sotomayor (1990), Two-Sided Matching: A Study in Game-Theoretic Modeling and Analysis, Cambridge University Press. - Roth, A. E. (2008), “What Have We Learned from Market Design?,” Economic Journal, 118(527), 285–310. - Train, K. (2009), Discrete Choice Methods with Simulation, 2nd ed., Cambridge University Press. - Vanderbei, R. J. (1996), Linear Programming: Foundations and Extensions, Kluwer Academic Publishers. |
| Admission requirements | 79759 "Economics of Matching I: Foundations" must have been taken and passed successfully. Basic knowledge of linear algebra, calculus, and optimization is required; students can catch up on these topics with the mathematics crash course 'Advanced Mathematics for Economics' (HS25) before the fall semester. Familiarity with basic statistics and econometrics at the level of the BA in Business and Economics is assumed. Willingness to work with R is expected; students who are uncertain about their computing skills are strongly encouraged to take advantage of the faculty's free statistical software crash courses, available during the first weeks of each semester in English. |
| Course application | Registration: Please enroll in the Online Services (services.unibas.ch); Eucor-Students and mobility students of other Swiss Universities or the FHNW first have to register at the University of Basel BEFORE the start of the course and receive their login data by post (e-mail address of the University of Basel). Processing time up to a week! Detailed information can be found here: https://www.unibas.ch/de/Studium/Mobilitaet.html After successful registration you can enroll for the course in the Online Services (services.unibas.ch). Applies to everyone: Enrolment = Registration for the course and the exam! A deregistration is possible until November 3, 2026 8pm by email to belegungstorno-wwz@unibas.ch. |
| Language of instruction | English |
| Use of digital media | No specific media used |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Friday | 14.15-18.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S14 HG.32 |
Dates
| Date | Time | Room |
|---|---|---|
| Friday 06.11.2026 | 14.15-18.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S14 HG.32 |
| Friday 13.11.2026 | 14.15-18.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S14 HG.32 |
| Friday 20.11.2026 | 14.15-18.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S14 HG.32 |
| Friday 04.12.2026 | 14.15-18.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S15 HG.31 |
| Modules |
Module: Field Electives in Economics and Public Policy (Master's Studies: Economics and Public Policy) Module: Specific Electives in Economics (Master's Studies: Business and Economics) |
| Assessment format | record of achievement |
| Assessment details | Students will be assigned a project related to the course material no later than in the third meeting of the colloquium. Assessment is based on a short paper (40%) documenting the question, approach, and main findings of the project, a presentation of the project in the last meeting of the colloquium on December 4 (40%), and participation in the discussion during that meeting (20%). |
| Assessment registration/deregistration | Reg.: course registr.; dereg.: Office of the Dean of Studies |
| Repeat examination | no repeat examination |
| Scale | 1-6 0,1 |
| Repeated registration | as often as necessary |
| Responsible faculty | Faculty of Business and Economics , studiendekanat-wwz@unibas.ch |
| Offered by | Faculty of Business and Economics |