Information Technology and its impact on Matching Markets
Article: https://eduardomazevedo.github.io/papers/azevedo-weyl-science-2016.pdf
This article explains how recent advances in information technology are developing many existing markets. In the past finding a perfect match in the market was time-consuming and difficult. People would have to wait for a taxi to drive by to get places, go to parties or some events to find a partner, go on every hotel website to find a lodging, and hear from friends what movies to watch and what songs to listen to. However with information technology, people can use an app to find the closest Uber to get places for a cheaper price, go on tinder and swipe through your phone to find someone that you like, go on travel websites to find lodging that is perfect for you, and go on Netflix or Spotify to see what movie they should watch or what music they should listen to in the recommended tab. Information technology has dramatically increased the ability to process the data relevant to perfect matching. Some data given were that Uber drivers spend 40% more time and miles driving passengers that standard cabs. It is quite incredible when you see these quantitative data on information technology.
This article connects to matching markets that we learned in class in the way that the advancement of information technology allows more matches to happen. These connections result in higher payoffs for both the sellers and the buyers. The increase in matches also increases the chances of perfect matches. It is interesting to see the factors that influence a market.