Saturday, 30 August 2014
The Straits Times
This was an article contribution by Ms Elisabetta Gentile, a lecturer from the Department of Economics at the NUS Faculty of Arts and Social Sciences. Discussing whether there is an economic rationale for matchmaking services, she highlighted that dating markets, like labour markets, are match making markets where there are two sets of elements (e.g. employers, and workers), and each element has a set of preferences. The market is in equilibrium when each element of one set is matched with an element of the other set. Dating markets, however, are different from labour markets, in that it is unclear who the buyer and the seller are, but the principle is basically the same. She opined that by facilitating the meeting of supply and demand, matchmakers eliminate information asymmetries and correct the market failure. That makes the whole society better off by creating more matches, and higher satisfaction among matched pairs.
The article is part of a monthly series “Ask: NUS Economists” by the NUS Department of Economics. Each month, a panel will address a topical issue.