Two-Sided Matching Theory And Its Application To The Mobile Phone Market In China

Two-sided matching problems exist widely in our economic life. The students-schools matching problem, marriage matching problem and workers-companies matching problem belong to two-sided matching problems. Two-sided matching theory is used to solve matching problems between the two sides of the market, to improve matching efficiency and to achieve stable matching. David Gale and Lolyd Shapley are the first one to study twosided matching theory. In 1962, the paper of College Admissions and Stability of Marriage they published has laid solid foundation for the study of two-sided matching theory.Since the first "big brother" appears in 1987, mobile phones have had a history of nearly thirty years by far. Our life has undergone tremendous changes as the development of mobile phones. With the development of mobile phone industry, the number of mobile phone manufacturers and mobile phone distributors is increasing rapidly. However, the matching efficiency between them is relatively low, which not only affects the development of each other, but also the development of mobile phone industry in China. So it is necessary to apply two-sided matching theory into mobile phone market in China to improve the matching efficiency between mobile phone manufacturers and mobile phone distributors.Firstly, this paper makes a literature review over the two-sided matching theory. By this way, I have mastered main types of two-sided matching theory, stability of matching, matching algorithm and its application background. Through the study of two-sided matching theory, I have a whole understanding of the development of two-sided matching theory and also establish a solid foundation for building two-sided matching model. Secondly, this paper analyzes the development of mobile phone market in China, introduces the development of mobile phone distributors and points out the problems of low matching efficiency between mobile phone manufacturers and mobile phone distributors. Thirdly, based on the evaluation system of mobile phone manufacturers and evaluation system of mobile phone distributors, this paper builds a two-sided matching model which is based on different evaluation indexes and proves the feasibility of the model. Finally, this paper draw its conclusions and points out the work which needs further improvement.