This project is structured along three lines of research in microeconomics. All three lines have been developed strongly in recent years by international groups of researchers, including the members of the current research proposal. The first research line consists of a number of theoretical and experimental studies on various aspects of matching markets and allocation problems. The second research line consists of experimental studies on a number of applied issues. And finally, the third research line consists of a set of empirical studies that aim at contributing to a better understanding of individuals’ welfare, preferences and behavior, as well as its implications for policy making.