IDEAS home Printed from https://ideas.repec.org/a/spr/joptap/v200y2024i2d10.1007_s10957-023-02349-3.html
   My bibliography  Save this article

Robust Matching for Teams

Author

Listed:
  • Daniel Owusu Adu

    (University of Georgia)

  • Bahman Gharesifard

    (University of California)

Abstract

We examine a hedonic model featuring uncertain production costs. The aim is to determine equilibrium prices and wages that facilitate the pairing of consumers with teams of producers, even when faced with the veil of uncertainty shrouding production costs. Using the framework of optimal transport theory, we identify the conditions sufficient for the existence of robust matching equilibrium. Our results show that under an additive uncertainty model for production costs, equilibrium can indeed be achieved, characterized by the expectation of the matching outcome under conditions of certainty. However, this model exhibits a twist of indeterminacy into the matching equilibrium. This departure from determinism is a distinctive feature, emphasizing the unique dynamics arising when uncertainty intersects with equilibrium-seeking mechanisms. To emphasize on this feature, we examine a special case which is related to martingale optimal transport. This case also underscores the complexity inherent in situations where uncertainty governs the equilibrium landscape. Altogether, our results offer a fresh perspective on matching scenarios marked by unpredictability in production costs.

Suggested Citation

  • Daniel Owusu Adu & Bahman Gharesifard, 2024. "Robust Matching for Teams," Journal of Optimization Theory and Applications, Springer, vol. 200(2), pages 501-523, February.
    • Handle: RePEc:spr:joptap:v:200:y:2024:i:2:d:10.1007_s10957-023-02349-3
    DOI: 10.1007/s10957-023-02349-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10957-023-02349-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10957-023-02349-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joptap:v:200:y:2024:i:2:d:10.1007_s10957-023-02349-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.