@article{Ahamad:235482, recid = {235482}, author = {Ahamad, Mazbahul}, title = {Envious Preferences in Two-sided Matching}, address = {2016-05-23}, number = {333-2016-14593}, series = {P8943}, pages = {12}, month = {May}, year = {2016}, abstract = {We develop a model of two-sided matching problem with individual-sided envious preferences that originate from an emulative envy effect in which a more desirable state that is preferred is owned by the other individual. We assume envious preferences influence an individual’s decision to enter into a two-sided network instead of being unassigned. In this paper, we show that an individual-sided envious preference leads to a stable matching under a two-sided market framework. Applying the mechanism of the model to behavioral contract theory, we show that individual-proposing envious acceptance leads to stable farmer-buyer contract matching considering buyer’s time invariant preference. We further argue that individual’s envious preference also contributes to herd-type acceptance that dominates individual’s logical preferences in participation decision under a less risky environment.}, url = {http://ageconsearch.umn.edu/record/235482}, doi = {https://doi.org/10.22004/ag.econ.235482}, }