Abstract:
This thesis aims to investigate the role of the restriction on workers preferences, that not all firms remain acceptable when all information about market is clear, on unravelling in two-sided matching markets. The model builds upon Halaburda (2007) by introducing an important modification. In this paper, some of the firms are not considered as acceptable in the second round. In the literature risk aversion, similarity of preference and costly search are revealed as the possible reasons of unravelling. Even if these reasons are not present, I have found that restriction on preferences of workers can lead to unravelling in some markets.
