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Matching with Trade-offs: Revealed Preferences over Competing Characteristics

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  • Alfred Galichon

    ()
    (Ecole polytechnique - Economics Department)

  • Bernard Salanie

    ()
    (Columbia University - Department of Economics)

Abstract

We investigate in this paper the theory and econometrics of optimal matchings with competing criteria. The surplus from a marriage match, for instance, may depend both on the incomes and on the educations of the partners, as well as on characteristics that the analyst does not observe. The social optimum must therefore trade off matching on incomes and matching on educations. Given a flexible specification of the surplus function, we characterize under mild assumptions the properties of the set of feasible matchings and of the socially optimal matching. Then we show how data on the covariation of the types of the partners in observed matches can be used to estimate the parameters that define social preferences over matches. We provide both nonparametric and parametric procedures that are very easy to use in applications.

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Bibliographic Info

Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0910-14.

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Date of creation: 2010
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Handle: RePEc:clu:wpaper:0910-14

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  1. Eugene Choo & Aloysius Siow, 2006. "Who Marries Whom and Why," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 175-201, February.
  2. Pierre-André Chiappori & Sonia Oreffice & Climent Quintana, 2009. "Fatter Attraction: Anthropometric and Socioeconomic Characteristics in the Marriage Market," Working Papers 2009-34, FEDEA.
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Cited by:
  1. Jeremy T. Fox & Chenyu Yang, 2012. "Unobserved Heterogeneity in Matching Games," NBER Working Papers 18168, National Bureau of Economic Research, Inc.
  2. Arnaud Dupuy & Alfred Galichon, 2012. "Personality Traits and the Marriage Market," Working Papers 2012/41, Maastricht School of Management.
  3. Alex Edmans & Xavier Gabaix, 2010. "Risk and the CEO Market: Why Do Some Large Firms Hire Highly-Paid, Low-Talent CEOs?," NBER Working Papers 15987, National Bureau of Economic Research, Inc.
  4. Pierre-André Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2012. "Matching with a Handicap: The Case of Smoking in the Marriage Market," CHILD Working Papers Series 8, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
  5. Pierre-Andr� Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2012. "Fatter Attraction: Anthropometric and Socioeconomic Matching on the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 120(4), pages 659 - 695.
  6. Bernard Salanié & Alfred Galichon, 2012. "Cupid's Invisible Hand: Social Surplus and Identification in Matching Models," Sciences Po publications info:hdl:2441/5rkqqmvrn4t, Sciences Po.

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