Why it matters

Gale-Shapley is mechanism design classic. Understanding shapes market design.

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The architecture

Proposers propose in preference order.

Receivers keep best proposal.

Rejected re-propose.

Terminates in O(n^2) proposals.

Gale-Shapley phasesProposerspropose in orderReceiverskeep best + reject restTerminateall matchedNobel Prize 2012 for Roth + Shapley; applications: NRMP + school choice
Gale-Shapley.
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How it works end to end

Strategy-proof for proposers.

Not for receivers.

Applications: NRMP, school choice, kidney exchange.